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SpaceX to move Starship and Super Heavy production to Texas as hop tests near [updated]

SpaceX's Starhopper seen in a January render and a January photo. (SpaceX/Elon Musk)

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SpaceX announced today that plans to ultimately build BFR (now known as Starship/Super Heavy) in the Port of Los Angeles have at least initially been replaced with a decision to move that development to South Texas, although details about the new facilities and their timelines remain have yet to be shared.

Drawn to one possible conclusion, this could mean that SpaceX no longer intends to build a BFR factory in the Port of Los Angeles, while all Falcon 9/Heavy, Merlin, and Raptor manufacturing will remain in the company’s Hawthorne, CA headquarters for the foreseeable future. However, the statements do not preclude the possibility that SpaceX still plans to develop an oceanside factory in the near future for Super Heavy, Starship, or both.

Update: CEO Elon Musk stated on Twitter that the Los Angeles Times’ original report and a partial miscommunication on behalf of SpaceX misconstrued an official statement that early-stage Starship and Super Heavy prototype construction and development would stay in South Texas for the time being. It appears that SpaceX’s Port of LA plans remain largely unchanged.

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“To streamline operations, SpaceX is developing and will test the Starship test vehicle at our site in South Texas. This decision does not impact our current manufacture, design, and launch operations in Hawthorne and Vandenberg Air Force Base in California. Additionally, SpaceX will continue recovery operations of our reusable Falcon rockets and Dragon spacecraft at the Port of Los Angeles.” – SpaceX, January 16th, 2019

In early 2018, SpaceX announced that it had required a new berth in Port of San Pedro with the specific intention of building a brand-new BFR factory. By keeping BFR production in Los Angeles and locating it directly adjacent to its transportation mode of choice (a barge from California to Texas), the official hope was to retain the best aerospace talent in the US (generally centered around central California) and ensure that its main Hawthorne factory was just a short drive away while still being able to relatively affordably transport massive 9m/30 foot-diameter BFR spaceships and boosters between California and Texas.

Also speaking in 2018, COO and President Gwynne Shotwell noted that the estimated cost of moving a BFR-sized object from its main Hawthorne factory to Port of LA would average $5M for a one-way trip. For context, that is almost 10% of the list price of an entirely new Falcon 9 rocket ($62M) just to perform basic, necessary logistics. As a result, SpaceX decided to build a permanent factory at a Port of LA dock, where the company had already sprung a giant tent to begin prototype fabrication. Known as Berth 240, it’s now unclear whether SpaceX will retain and still develop the Port of San Pedro plot into a permanent facility, estimated to cost a few tens of millions of dollars to complete.

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In the company’s approved environmental impact assessment, the implication was that the BFR factory could double as dedicated post-recovery processing and refurbishment facility for regular Falcon 9 missions and provide a far more spacious dock for drone ship Just Read The Instructions and support vessel NRC Quest. That sort of facility could easily still provide significant value to SpaceX, although it may be the case that it would not earn its keep nearly well enough to account for the redundancy of refurbishing at Port of LA instead of simply shipping recovered Falcon 9 boosters to the main Hawthorne factory, which can already host the refurbishment of at least two Falcon 9 boosters simultaneously.

SpaceX may also still want to have LA facilities capable of affordably supporting Starship and Super Heavy structures development and production in the event that some of its excellent staff of engineers and technicians are not interested in moving from Los Angeles to the sparsely-populated southeast tip of Texas. In the meantime, the company continues to work towards the completion of its first flightworthy(ish) Starship prototype at its rapidly expanding South Texas facilities, with CEO Elon Musk indicating that hop tests of the vehicle could begin as early as February or March 2019.

Expect a new article on the recent Starship hopper progress very soon!


Check out Teslarati’s newsletters for prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket launch and recovery processes!

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla Cybercab spotted testing on public roads for the first time

The car was spotted just minutes from Tesla’s Engineering Headquarters in Los Altos, California. There are a few interesting tidbits we can gather from the photo and the information shared with it.

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Credit: Teslarati

The Tesla Cybercab has been spotted testing on public roads for the first time, marking a substantial step forward in the vehicle’s development.

The car was spotted just minutes from Tesla’s Engineering Headquarters in Los Altos, California. There are a few interesting tidbits we can gather from the photo and the information shared with it:

The vehicle had a driver and side view mirrors equipped on it, which seems to be pretty expected, especially at this stage.

Tesla might have been using its Full Self-Driving software with the vehicle as it enters this new stage of testing on public roads. This seems most likely, especially as the car, which has long been developed to be void of a steering wheel and pedals, will totally rely on autonomous tech to transport one or two passengers to their destination.

Additionally, side view mirrors are required by law at delivery, and Tesla was likely looking to keep things as safe and elementary as possible, especially with this early stage of testing.

As this is the first time the vehicle has been spotted on public roads and the first time it was likely testing on them, Tesla was being cautious.

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There have been a lot of developments with Cybercab over the past few weeks, as the car has been spotted testing on the Fremont Factory’s test track, units have been seen outside of Gigafactory Texas’s crash testing facility, and there has been some additional speculation about what the vehicle’s standard equipment will be.

There have also been quite a few job postings by Tesla for manufacturing and production roles related to Cybercab over the past few weeks.

Yesterday, Tesla’s Board Chair, Robyn Denholm, revealed that the company could end up building Cybercab with a steering wheel and pedals, contrary to what Tesla and CEO Elon Musk have wanted to do.

Tesla Cybercab might be getting a huge change

The vehicle has yet to reach that stage of regulatory testing, but Tesla wants to start volume production in Q2. If it wants to release the vehicle without any manual controls, that means that Full Self-Driving will need to be completed within the next eight months.

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Tesla hints it could see ‘a few more vehicles’ released soon

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

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Tesla Board Chair Robyn Denholm hinted the company could see “a few more vehicles” coming out and being released soon, although there is no indication of what could be on the way based on her comments.

However, Tesla has hinted toward several potential releases in the coming years, as other executives, including Chief Designer Franz von Holzhausen, have talked briefly about what could be on the way.

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

It was a vague and almost cryptic sentence, as, in all honesty, it was not completely clear whether she was talking about recent releases that are just making their way to market, like the Model 3 and Model Y “Standard,” or new vehicles altogether.

Nevertheless, it’s worth dissecting.

Tesla “Standard” Models

On October 7, Tesla launched the Standard Model 3 and Model Y, stripped-down versions of their now “Premium” siblings. The Standard trims lack premium features like leather seats, a rear touchscreen, and a glass roof, among other features.

Tesla begins deliveries of its affordable Model Y Standard

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These cars are just starting to be delivered for the first time, so it is possible that Denholm was referring to these cars.

Potential Model 2 Hint?

There has always been a looming vehicle model that many Tesla fans and owners have been intrigued by: the Model 2.

This car was hinted at being the $25,000 model that Tesla was rumored to be developing, and many thought that was the vehicle that would be released earlier this month, not the Standard Model 3 and Model Y.

Instead, the Model 2 could be something that would enable Tesla to reach an entirely new consumer base, including those who are not able to swing the payment for the company’s more premium offerings.

It seems Tesla will have to launch some sort of extremely affordable model in the future, and with the Cybercab being slotted at that rough price point, it would not be out of the question for it to be in the realm of possibility for future releases.

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It’s worth noting, however, that it is probably unlikely this will happen. Tesla is so deadset focused on autonomy, it seems Cybercab would take extreme precedence over the unconfirmed “Model 2.”

Cybertruck-inspired SUV

Tesla fans have been begging the company to develop a full-size SUV that would compete with the Ford Expedition or Chevrolet Tahoe, but the company has not given any indication that this would be something it would build.

Nevertheless, there was a very subtle hint in a recent promotional clip that showed a Cyber SUV mock-up placed strategically next to a clay model of a Model 3:

Tesla appears to be mulling a Cyber SUV design

The Model X is simply not what people want when it comes to an SUV, as it does not have the seating capacity and cargo space that many need with a full-sized SUV.

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This issue, in particular, has been one that has been extremely relevant to the company’s future lineup as consumers have shown they would be interested in a Tesla vehicle that fit this description.

Additionally, von Holzhausen said in September that a Cyber SUV or a smaller electric pickup with a more traditional design is “definitely things we’ve considered…We’re working on so many innovative and fun things.”

Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck

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Investor's Corner

Tesla enters new stability phase, firm upgrades and adjusts outlook

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

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Credit: Tesla China

Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.

The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

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Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.

They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.

Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.

Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.

Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.

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Ives said in a note on October 2:

“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”

Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.

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