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SpaceX borrows Tesla's tent factory strategy for new Starship production HQ
Confirmed yesterday morning by CEO Elon Musk, SpaceX has copied Tesla’s approach to factory expansion and is building a giant tent to upgrade its South Texas Starship production facilities.
A big step towards more traditional aerospace-style manufacturing facilities, SpaceX has contracted the same company used by Tesla to create a fourth general assembly line (GA4) in a giant tent outside its Fremont, CA factory in 2018. Instead of Model 3s, however, Sprung Instant Structures (Sprung for short) is rapidly raising a large tent that will eventually allow SpaceX to fabricate and weld more Starship parts and sections in an enclosed environment, an improvement from the current practice of building prototypes out in the harsh environment of coastal Texas.
In typical fashion, Musk believes that the new enclosed production facilities – just a collection of shipping crates as of December 18th – could be ready to begin manufacturing Starship parts as early as next month, and the progress Sprung has made makes it unusually hard to fault his optimism.
Likely taken in mid-December, aerial photos taken by pilot and photographer Sam Sun help sketch out a rough view of the prospective Starship factory. SpaceX appears to have almost entirely foregone a concrete foundation for the new tent, instead opting for lines of steel shipping containers that likely add a bit of height at the cost of structural stability.
.@BocaChicaGal covers the work at these sites extensively, but here's a peek over the fence 😉 pic.twitter.com/0eDJp2agqr— Sam Sun (@BirdsNSpace) December 29, 2019
According to figures printed right on one of Sprung Structures’ many shipments of materials, the initial building will measure approximately 45 meters (150 ft) wide, 77 meters (255 ft) long, and 18 meters (60 ft) tall. While Tesla’s GA4 tent is the same width and (mostly) height, it’s an impressive 280 meters (915 ft) long – almost four times bigger than SpaceX’s newest Boca Chica addition.
While the shipping container foundation is definitely a bit of a risk a mile from the Gulf of Mexico, it does mean that SpaceX might actually be able to move the shell of its new Starship factory if the need arises. SpaceX is in the midst of expanding its Boca Chica lots, potentially giving the company a lot more space to grow its enclosed factory down the road. The simplest possible expansion available would basically double the length of the existing structure, making it more like 150-180 meters (500-600 ft) long.
Regardless, even the current 150′ x 255′ enclosure will end up offering more than 38,000 ft² (3500 m²) of factory space once finished. Depending on what its primary purpose is, SpaceX could probably fit 5-8 stacks of 5-6 rings each (10-11m tall) down the center of the tent, with room for maybe 10-24 additional stacks of 2-3+ rings (3.5-5m tall) in the space remaining. The middle line of hypothetical rings could produce the entire barrel section of 1-2 Starships simultaneously, leaving perhaps 3-4 large sections to be welded together out in the elements or at SpaceX’s new wedge-shaped windbreak.
Of course, the facility will likely end up being mixed-use, potentially offering enough space to simultaneous fabricate all subsections of a single Starship prototype before they are assembled elsewhere.
Ultimately, Sprung is now in the process of installing a large quantity of insulation inside the tent’s walls, indicating that SpaceX’s South Texas welding crew may soon be blessed with a climate-controlled work environment. Meanwhile, SpaceX CEO Elon Musk believes that Boca Chica’s new tent could be complete and ready to begin building Starship hardware as soon as January 2020, while he says that the next Starship prototype – now known as Starship SN01 (serial number 01) – could be ready for flight testing just one or two months after that.
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Elon Musk
Tesla CEO Elon Musk drops massive bomb about Cybercab
“And there is so much to this car that is not obvious on the surface,” Musk said.
Tesla CEO Elon Musk dropped a massive bomb about the Cybercab, which is the company’s fully autonomous ride-hailing vehicle that will enter production later this year.
The Cybercab was unveiled back in October 2024 at the company’s “We, Robot” event in Los Angeles, and is among the major catalysts for the company’s growth in the coming years. It is expected to push Tesla into a major growth phase, especially as the automaker is transitioning into more of an AI and Robotics company than anything else.
The Cybercab will enable completely autonomous ride-hailing for Tesla, and although its other vehicles will also be capable of this technology, the Cybercab is slightly different. It will have no steering wheel or pedals, and will allow two occupants to travel from Point A to Point B with zero responsibilities within the car.
Tesla shares epic 2025 recap video, confirms start of Cybercab production
Details on the Cybercab are pretty face value at this point: we know Tesla is enabling 1-2 passengers to ride in it at a time, and this strategy was based on statistics that show most ride-hailing trips have no more than two occupants. It will also have in-vehicle entertainment options accessible from the center touchscreen.
It will also have wireless charging capabilities, which were displayed at “We, Robot,” and there could be more features that will be highly beneficial to riders, offering a full-fledged autonomous experience.
Musk dropped a big hint that there is much more to the Cybercab than what we know, as a post on X said that “there is so much to this car that is not obvious on the surface.”
And there is so much to this car that is not obvious on the surface
— Elon Musk (@elonmusk) January 2, 2026
As the Cybercab is expected to enter production later this year, Tesla is surely going to include a handful of things they have not yet revealed to the public.
Musk seems to be indicating that some of the features will make it even more groundbreaking, and the idea is to enable a truly autonomous experience from start to finish for riders. Everything from climate control to emergency systems, and more, should be included with the car.
It seems more likely than not that Tesla will make the Cybercab its smartest vehicle so far, as if its current lineup is not already extremely intelligent, user-friendly, and intuitive.
Investor's Corner
Tesla Q4 delivery numbers are better than they initially look: analyst
The Deepwater Asset Management Managing Partner shared his thoughts in a post on his website.
Longtime Tesla analyst and Deepwater Asset Management Managing Partner Gene Munster has shared his insights on Tesla’s Q4 2025 deliveries. As per the analyst, Tesla’s numbers are actually better than they first appear.
Munster shared his thoughts in a post on his website.Â
Normalized December Deliveries
Munster noted that Tesla delivered 418k vehicles in the fourth quarter of 2025, slightly below Street expectations of 420k but above the whisper number of 415k. Tesla’s reported 16% year-over-year decline, compared to +7% in September, is largely distorted by the timing of the tax credit expiration, which pulled forward demand.
“Taking a step back, we believe September deliveries pulled forward approximately 55k units that would have otherwise occurred in December or March. For simplicity, we assume the entire pull-forward impacted the December quarter. Under this assumption, September growth would have been down ~5% absent the 55k pull-forward, a Deepwater estimate tied to the credit’s expiration.
“For December deliveries to have declined ~5% year over year would imply total deliveries of roughly 470k. Subtracting the 55k units pulled into September results in an implied December delivery figure of approximately 415k. The reported 418k suggests that, when normalizing for the tax credit timing, quarter-over-quarter growth has been consistently down ~5%. Importantly, this ~5% decline represents an improvement from the ~13% declines seen in both the March and June 2025 quarters.“
Tesla’s United States market share
Munster also estimated that Q4 as a whole might very well show a notable improvement in Tesla’s market share in the United States.
“Over the past couple of years, based on data from Cox Automotive, Tesla has been losing U.S. EV market share, declining to just under 50%. Based on data for October and November, Cox estimates that total U.S. EV sales were down approximately 35%, compared to Tesla’s just reported down 16% for the full quarter.  For the first two months of the quarter, Cox reported Tesla market share of roughly a 65% share, up from under 50% in the September quarter.
“While this data excludes December, the quarter as a whole is likely to show a material improvement in Tesla’s U.S. EV market share.“
Elon Musk
Tesla analyst breaks down delivery report: ‘A step in the right direction’
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026,” Ives wrote.
Tesla analyst Dan Ives of Wedbush released a new note on Friday morning just after the company released production and delivery figures for Q4 and the full year of 2025, stating that the numbers, while slightly underwhelming, are “better than feared” and as “a step in the right direction.”
Tesla reported production of 434,358 and deliveries of 418,227 for the fourth quarter, while 1,654,667 vehicles were produced and 1,636,129 cars were delivered for the full year.
Tesla releases Q4 and FY 2025 vehicle delivery and production report
Interestingly, the company posted its own consensus figures that were compiled from various firms on its website a few days ago, where expectations were set at 1,640,752 cars for the year. Tesla fell about 4,000 units short of that. One of the areas where Tesla excelled was energy deployments, which totaled 46.7 GWh for the year.
🚨 Wedbush’s Dan Ives has released a new note on Tesla $TSLA:
“Tesla announced its FY4Q25 delivery numbers this morning coming in at 418.2k vehicles slightly below the company’s consensus delivery estimate of 422.9k but much better than the whisper numbers of ~410k as the…
— TESLARATI (@Teslarati) January 2, 2026
In terms of vehicle deliveries, Ives writes that Tesla certainly has some things to work through if it wants to return to growth in that aspect, especially with the loss of the $7,500 tax credit in the U.S. and “continuous headwinds” for the company in Europe.
However, Ives also believes that, given the delivery numbers, which were on par with expectations, Tesla is positioned well for a strong 2026, especially with its AI focus, Robotaxi and Cybercab development, and energy:
“This will be viewed as better than feared deliveries and a step in the right direction for the Tesla story heading into 2026. We look forward to hearing more at the company’s 4Q25 call on January 28th. AI Valuation – The Focus Throughout 2026. We believe Tesla could reach a $2 trillion market cap over the coming year and, in a bull case scenario, $3 trillion by the end of 2026…as full-scale volume production begins with the autonomous and robotics roadmap…The company has started to test the all-important Cybercab in Austin over the past few weeks, which is an incremental step towards launching in 2026 with important volume production of Cybercabs starting in April/May, which remains the golden goose in unlocking TSLA’s AI valuation.”
It’s no secret that for the past several years, Tesla’s vehicle delivery numbers have been the main focus of investors and analysts have looked at them as an indicator of company health to a certain extent. The problem with that narrative in 2025 and 2026 is that Tesla is now focusing more on the deployment of Full Self-Driving, its Optimus project, AI development, and Cybercab.
While vehicle deliveries still hold importance, it is more crucial to note that Tesla’s overall environment as a business relies on much more than just how many cars are purchased. That metric, to a certain extent, is fading in importance in the grand scheme of things, but it will never totally disappear.
Ives and Wedbush maintained their $600 price target and an ‘Outperform’ rating on the stock.
Tesla CEO Elon Musk drops massive bomb about Cybercab
Tesla Q4 delivery numbers are better than they initially look: analyst
