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SpaceX’s Starship Super Heavy booster needs a custom assembly tower
SpaceX CEO Elon Musk has confirmed that Starship’s Super Heavy rocket booster will get its own tower-like vehicle assembly building (VAB) – and work on the structure may have already begun.
While the only visible work SpaceX has thus far completed on its next-generation Starship launch vehicle is related to the more complex and unproven upper stage of the rocket, its Super Heavy first stage (booster) is just as critical. For SpaceX, Starship was the perfect starting point, itself following on the footsteps of a largely successful multi-year Raptor engine development program. Substantially smaller than Super Heavy and requiring 5-10 times fewer engines, Starship serves as a testbed for an almost entirely new suite of technologies and strategies SpaceX is employing to build massive rockets out of commodity steel.
In recent months, particularly following the first successful pressure test of a full-scale Starship tank section in April, SpaceX has effectively proven that those uncharacteristically cheap and simple materials and methods can, in fact, build rocket structures that should stand up to orbital spaceflight. In theory, aside from the booster’s 31-engine thrust structure, the same methods and materials used to build Starships can be applied unchanged to manufacture Super Heavy. The booster’s almost unfathomable size, however, will necessitate its own dedicated assembly facilities.
While Starship itself is not exactly small at ~50m (165 ft) tall and 9m (30ft) wide, the Super Heavy booster tasked with launching the ship on its way to orbit will easily be the largest individual rocket stage ever built. Currently expected to measure 70m (230 ft) tall, Super Heavy – just the first stage of the Starship launch vehicle – will already be as tall as an entire Falcon 9 or Falcon Heavy and weigh roughly three times more than the latter triple-booster rocket when fully fueled. At liftoff, Super Heavy will produce more than triple the thrust of Falcon Heavy and double the thrust of Saturn V, the most powerful liquid-fueled rocket to reach orbit.
Thanks to the sheer size of the booster, SpaceX’s existing Starship-sized vehicle/vertical assembly building (VAB) is far too small for Super Heavy and is even too short to fully stack a ~50m Starship. SpaceX’s contractor of choice started assembling that VAB around January 15th and the facility was able to begin supporting its first Starship stacking and welding operations on March 2nd, just a month and a half later, with the structure fully completed by March 18th. As such, assuming the in-work foundation is as close to completion as it seems and SpaceX uses the same contractor for the next building, Super Heavy’s VAB could be ready to build the first massive booster prototype as early as July or August. Things could take a bit longer given that Musk says the booster VAB will be 81m (265 ft) tall, nearly twice the height of Starship’s VAB, but likely by no more than a few weeks.
That timeline meshes well with a senior SpaceX engineer and executive’s recent suggestion that the first orbital Starship launch attempt could still happen before the end of the year. Of course, for Super Heavy to become a genuine priority for SpaceX and receive the resources necessary to achieve that extremely ambitious goal, Starship will have to perform almost flawlessly during a series of increasingly challenging tests planned over the next few months. First up, SpaceX needs to finish repairing the launch pad after Starship SN4 exploded during testing and Starship SN5 needs to be transported to the pad to complete acceptance tests, static fire(s), and its first 150m (~500 ft) hop test. After that, SpaceX will either move on to a 2 km (1.25 mi) hop or a more ambitious 20 km (12.5 mi) flight designed to test Starship’s skydiver-like approach to landing.
If Starship SN5 or SN6 manage to complete those aforementioned tests, the horse may actually be in front of the cart for Super Heavy prototype production and Starship’s first orbital launch attempt.
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
