News
SpaceX to move Starship and Super Heavy production to Texas as hop tests near [updated]
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.
SpaceX will not longer be manufacturing its Mars spaceship and rocket booster at the Port of Los Angeles. Instead, the work will be done in South Texas. https://t.co/LqBfPawiZf
— Los Angeles Times (@latimes) January 16, 2019
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.
The source info is incorrect. Starship & Raptor development is being done out of our HQ in Hawthorne, CA. We are building the Starship prototypes locally at our launch site in Texas, as their size makes them very difficult to transport.
— Elon Musk (@elonmusk) January 16, 2019
“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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- SpaceX currently uses Berth 240 as fairing recovery vessel Mr. Steven’s base of operations. (Pauline Acalin)
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- Most of the Berth 240 plot features decrepit but historic buildings from the early 20th century – SpaceX is required by its EIS to help preserve them and can only demolish one small hangar. (Pauline Acalin)
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- Over the last six months, SpaceX has VERY gradually prepared the foundation of its prospective Berth 240 factory, although barely any visible progress has been made. (Pauline Acalin, 11/30/18)
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- Blueprints of the proposed BFR factory at Berth 240. (SpaceX)
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- Renders of the proposed BFR factory at Berth 240. (SpaceX)
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- An overview of the two planned stages of BFR factory construction, March 2018. (SpaceX)
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.
Starship Hopper has been taken apart again (for the installation of the bulkhead etc.)
📸NSF's BocaChicaGalhttps://t.co/DlTj9Qiijz
NSF Overview News Article by Thomas Burghardt @TGMetsFan98 for those catching up:https://t.co/rgliFAkBMC pic.twitter.com/DzSJzjSvoI
— NSF – NASASpaceflight.com (@NASASpaceflight) January 15, 2019
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!
Tesla Full Self-Driving (Supervised) showed a record attach rate at delivery for new vehicles in the third quarter of 2026.
75 percent of new vehicle deliveries in North America included a subscription to FSD software, up from 55 percent in the prior quarter, a 20-percentage-point sequential gain in the company’s most mature market.
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
Tesla shed light on the Q3 Shareholder Deck that 75 percent of new deliveries came with an FSD subscription:
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets. “
The higher attach rate accompanied strong growth in the overall FSD consumer base, as active subscriptions rose to 1.75 million, a 67 percent year-over-year increase. For the first time, more than half of paid customers are on the monthly subscription, which is priced at $99 per month in the U.S.
People are buying FSD with a car attached, not the other way around
— Elon Musk (@elonmusk) October 21, 2026
The transition to subscriptions has accelerated since Tesla discontinued the one-time purchase option in most markets earlier this year. The recurring model improves revenue visibility and margins compared with large upfront payments. With three-quarters of North American deliveries now including FSD, the software is now an evidently large contributor to Tesla’s economics and ancillary revenue.
Geographic expansion remains important for further gains. FSD is now available in nine countries in the EU, and more than 100,000 customers have driven over 160 million kilometers. Tesla is pursuing broader EU-wide approval, with a related vote expected in December. Similar progress in additional markets could support higher attach rates beyond North America.
These results came as Tesla had a strong quarterly delivery performance of 486,532 vehicles in the quarter, which came with its largest passenger-vehicle backlog in four years. Battery supply continued to limit volume, but the company has pointed to FSD as a clear difference-maker that is helping sustain demand. As supervised capabilities improve, the attach rate will likely continue to improve.
At face value, it is a key measure of how Tesla is converting sales into autonomy progress.
Update: 10/22 10:51a – Para 1 consumers changed to “customers” for accuracy.
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by customers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla buyers are buying for Full Self-Driving and not for the car, data shows
Tesla Cybercab gets a for sale date at last
