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SpaceX's Texas Starship factory set to receive more parts from Florida
After successfully delivering Starship hardware and manufacturing tools to SpaceX’s Boca Chica, Texas rocket factory and launch facilities, the company has begun preparing a second load of parts to be shipped from Florida to Texas in the near future.
This is the latest chapter in a saga that began when SpaceX revealed that it would effectively pause its Florida Starship manufacturing operations and reassign most of its affected employees. Since SpaceX’s early-December confirmation, the company’s Cocoa, Florida Starship production hub has been more or less at a standstill, only interrupted once and awhile by efforts to either scrap hardware that is no longer needed or send it to Texas, where SpaceX has redoubled efforts to build the next series of Starship prototypes.
Teams in Florida are still working tirelessly to construct a massive Starship launch mount at Pad 39A believed to be capable of supporting full-scale Starship and Super Heavy static fires and launches, confirmation that SpaceX is likely only temporarily halting Starship production in the region. Nevertheless, the focus is now unequivocally on SpaceX’s Boca Chica facilities, where the company is rapidly building and expanding manufacturing facilities and constructing the next full-scale Starship prototype (SN01).
Although manufacturing operations have been paused in Florida, the existing Cocoa facility still has a huge amount of Starship hardware strewn about, most of which appears to be bound for scrapyards. Some of that hardware and infrastructure, however, can be salvaged and used elsewhere by SpaceX, and that is exactly what the company is now doing.
Most recently, SpaceX loaded transport ship GO Discovery with two giant steel stands and a completed Starship dome and transported that hardware from Port Canaveral, Florida to Port of Brownsville in early-December 2019. After arriving, SpaceX moved the rocket parts and infrastructure by road to its Boca Chica facilities, where they have since been stored until they’re needed.
At the moment, the almost-finished Starship Mk2 prototype remains at SpaceX’s Cocoa factory in three giant pieces – a cylindrical tank and engine section, the start of a curved nose section, and the tip of that nose section. It remains to be seen what the fate of those rocket parts is, as much of the structure could theoretically be sent to Texas to expedite Starship SN01 production and assembly. However, the utility of those parts is likely almost entirely dependent on their quality and the design and fabrication delta between them and whatever SpaceX has in mind for the next phase of prototypes.
SpaceX continues to develop Starship in largely the same way it worked on Falcon 9 booster landings, beginning with a minimum viable product (Grasshopper/Starhopper) and gradually improving the test hardware into something much more reminiscent of the real deal (F9R/Starship Mk1, Mk2). Ultimately, all the experience gained and lessons learned from building and flying those increasingly more complex prototypes is merged with true orbital-class flight hardware.
It appears that SpaceX (or at least CEO Elon Musk) believes that the company may have already learned enough from Starhopper and Starship Mk1/Mk2 to graduate directly to some form of serial production – implied by his statement that the next Texas prototype will now be known as Starship SN01. Formerly Starship Mk3, Starship SN01 will be built with an array of refined or fully-new production and assembly processes, hopefully resulting in a prototype that is significantly more refined than Starship Mk1, which is believed to have been intentionally destroyed during pressure testing in November 2019.
In line with that strategy, SpaceX is preparing to ship more upgraded Starship hardware and infrastructure from Florida to Texas.
Based on photos taken in the last few days by local photographer and observer John Winkopp, GO Discovery’s next shipment will include a number of rolls of stainless steel stock, another steel stand for Starship ring assembly, and parts of another unfinished Starship tank dome.
Altogether, it’s possible that Starship SN01 assembly will end up taking far less time than Starship Mk1 or Mk2. Musk believes that that new and improved Starship prototype could be ready for flight testing as early as February or March 2020.
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Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
