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SpaceX closes in on West Coast Starlink launches with lease for drone ship dock space
Amid a major hiring push and calls for monthly launches, SpaceX has taken its latest step towards launching Starlink satellites from the West Coast with a lease for rocket recovery ship dock space at the Port of Long Beach.
News of the port lease broke on April 26th with a tweet from the mayor of Long Beach, California after the Port of Long Beach (POLB) Commission voted to approve SpaceX’s 24-month sublease with an effective start date of May 1st, 2021. From 2014 to 2020, a massive floating rocket launch complex and associated service ships once used by SeaLaunch called POLB’s Pier 16 home while mothballed and the company left behind a decent amount of infrastructure when it vacated the facility last year.
That includes a ~5600 square meter (~65,000 sq ft) warehouse and office space formerly used to process SeaLaunch payloads and Ukrainian Zenit rockets, as well as a pier and dock space generally optimized for loading and unloading large rockets from rocket transport ships. In other words, Pier 16 is a perfect fit for SpaceX’s needs.
The news came as a surprise because SpaceX already has a lease for several berths and dock space at Port of San Pedro, which – along with Port of Long Beach – makes up the greater Port of Los Angeles. SpaceX has used those facilities for the better part of a decade – initially to support Dragon spacecraft recoveries but later as a hub for drone ship Just Read The Instructions (JRTI) and fairing recovery ship Mr. Steven (later Ms. Tree).
SpaceX has a bit of a sordid history with port leases over the last several years after twice entering and backing out of Port of Los Angeles (San Pedro) lease agreements to build a Starship factory directly on the water in 2018 and 2020. This time around, POLB commission documents indicate that this new lease is not the third in a line of ill-fated Starship factory plans – but instead a simple relocation of existing West Coast Falcon rocket recovery operations just two miles east of their current home.
It’s unclear why exactly SpaceX is leasing much larger berth and dock space at a port in competition with its current Port of Los Angeles landlord or if Pier 16 will be an addition to – or a replacement for – its current berths to the west. At approximately $100,000 per month, Pier 16 will be substantially more expensive, ruling out cost savings, which could mean that SpaceX has reason to believe that its West Coast rocket recovery operations are going to experience a substantial uptick in activity in the near future.
Indeed, in retrospect, SpaceX’s current Port of San Pedro berths and dock space have always been fairly limited, offering just enough space for a few small tents on concrete and a drone ship and two support vessels to park end to end. Assuming SpaceX moves all operations to Pier 16 and closes out its San Pedro lease, the new facilities should offer a bit more dock space along the pier itself, as well as far more room – and an existing warehouse with offices – to process recovered Falcon boosters and fairings.
Over half a decade of operations, SpaceX recovered Falcon boosters with drone ship JRTI just seven times (of eight attempts) on the West Coast, making it clear why the company simply chose to make do with close quarters and a barebones dockside setup. Now, however, SpaceX appears to be preparing its Vandenberg Air Force Base (VAFB) launch site and associated Port of LA recovery assets for a far more ambitious period of Falcon 9 launch activity.
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Other observations support that conclusion. Over the last six or so months, SpaceX has been aggressively hiring to fully outfit its VAFB SLC-4 launch pad after supporting just two West Coast launches in the last ~28 months. Most notably, hiring ‘flyers’ distributed on social media by SpaceX employees touted a target of monthly launches from the company’s West Coast pad – an unprecedented cadence over the decade SpaceX has leased it.
First reported by Spaceflight Now, SpaceX President and COO Gwynne Shotwell recently revealed that the company intends to begin dedicated polar Starlink launches from Vandenberg as early as this summer – July 2021 if taken literally. Other “industry officials” reportedly corroborated those plans.
With its hiring campaign finally starting to slow down and a new Port of Long Beach lease set to open on May 1st, the only real ‘missing link’ for SpaceX’s plans to restart regular West Coast Falcon 9 launches is the fleet of ships the company will need to recover Falcon boosters and payload fairings. To maximize efficiency, dedicated polar Starlink launches will require Falcon 9 boosters to land far downrange and will be even more challenging than the rocket’s now-routine missions to low Earth orbit (LEO), which require almost every ounce of performance the rocket can give.
SpaceX transported its second drone ship – Just Read The Instructions (JRTI) – across the Panama Canal from Port of LA to Port Canaveral, Florida in 2019, where it still operates today. To achieve SpaceX’s planned cadence of up to 48 launches in 2021, the company will almost certainly need both drone ships on the East Coast. A third drone ship – named A Shortfall Of Gravitas (ASOG) – has been in the works for years, though SpaceX CEO Elon Musk has long described the vessel as an addition to the company’s Florida fleet that would enable Falcon Heavy to land all three first-stage boosters at sea for maximum payload capacity.
For now, we’ll just have to wait and see if SpaceX intends to send that third drone ship directly to California to support an imminent series of polar Starlink launches.
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Elon Musk
Space finally faced the people living next to its next Terafab mega-project
SpaceX confirmed Terafab’s Grimes County site is locked in, with construction starting within months.
SpaceX and Terafab representatives sat across from Grimes County residents for the first time on Wednesday, telling a packed Commissioners Court room that the $55 billion chip manufacturing project is now a done deal at the Gibbons Creek Reservoir site.
The meeting followed a $10 million check SpaceX sent the county earlier this week, satisfying a payment deadline built into the tax abatement agreement both sides signed in June. Elon Musk shared a post on X confirming the payment, and County Judge Joe Fauth told the San Antonio Express-News his office deposited the check after it beat its deadline.
Wednesday’s session, first reported by KBTX, moved the project from paperwork to construction. Terafab representative Riley Trennell told residents the JETI tax break agreements with Iola ISD and Anderson-Shiro CISD are signed and active, and that civil work and foundation prep are starting almost immediately. Renderings of the facility could be released within days, he said, with construction beginning within months.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
Musk first announced Terafab in March as a joint venture between Tesla, SpaceX and xAI aimed at producing over a terawatt of AI compute annually, an amount that dwarfs the roughly 20 gigawatts the entire global chip industry produces today. Intel joined as a manufacturing partner in April. Musk has said the project needed its own day in the spotlight rather than being squeezed into an earnings call, and for months the Grimes County site remained unconfirmed even as reporting pointed there.
SpaceX attorney Buck Brannon used Wednesday’s meeting to note that the company’s abatement is roughly 78 percent, not the 100 percent some earlier reports suggested. In exchange, SpaceX will pay Grimes County a fixed $20 million a year for 35 years, a total of $710 million, which Brannon said exceeds the $14 million Tesla paid Travis County in 2025.
SpaceX also addressed environmental concerns that have followed the project since Musk’s Terafab partnership with Intel was announced. Representatives said Terafab will not raise electric bills for other ratepayers, will not deplete local water supplies and will not draw down the Navasota River. SpaceX confirmed it owns the Navasota River pumping station, which it plans to use to divert stormwater into the Gibbons Creek Reservoir, and said it will build its own natural gas plants to power the facility rather than pulling from the ERCOT grid.
Grimes County commissioners also approved an addendum letting county employees use ten approved AI chatbots for work, including Grok.
Elon Musk has declared that SpaceX has effectively solved one of Starship’s most persistent engineering challenges: the reliability of its heat shield tiles.
During the company’s first-ever Earnings Call, the SpaceX CEO stated:
“I don’t want to jinx it or anything, but I think I would call the heat shield problem solved at this point. All indications from data and visual inspection is we have solved it. That doesn’t mean we won’t make improvements, but we do not see any technical obstacles to achieving rapid reusability at this point.”
Starship’s heat shield consists of roughly 18,000 hexagonal ceramic tiles covering the windward side of the upper stage. These tiles form the thermal protection system that shields the vehicle’s stainless-steel structure from the extreme heat of atmospheric reentry.
Elon says he believes the heat shield problem with Starship is currently solved.
He called it “arguably the single biggest problem” pic.twitter.com/eEE9vM5zlz
— TESLARATI (@Teslarati) August 4, 2026
During descent, atmospheric friction generates temperatures exceeding several thousand degrees Celsius and creates plasma flows capable of melting unprotected metal. The tiles absorb, radiate, and insulate against this energy, allowing the vehicle to survive and potentially fly again. Without a durable heat shield, full and rapid reusability, the cornerstone of Starship’s design for frequent launches, satellite deployments, and deep-space missions, would remain impossible.
The tiles have long been a source of difficulty. On earlier test flights, a significant number of tiles detached during ascent due to vibration, aerodynamic loads, and imperfect attachment methods using pins and adhesives. Gaps between tiles allowed hot plasma to infiltrate, causing secondary damage and hot spots on the underlying structure.
These issues echoed challenges faced by NASA’s Space Shuttle, whose ceramic tiles required extensive, labor-intensive inspections and replacements between missions, preventing rapid turnaround. SpaceX has iteratively improved materials, standardized tile shapes, refined attachment techniques, added secondary ablative layers, and tested sealing methods such as “crunch wrap” felt to close gaps.
Progress was visible across Flights 10–12, with steadily better tile retention, yet questions remained about whether the system could support the minimal-refurbishment goal of rapid reuse.
Flight 13 on July 24 provided the decisive evidence. Ship 40 flew a deliberately more demanding profile with higher dynamic pressure to stress the heat shield beyond typical operational loads. It successfully deployed 20 operational Starlink V3 satellites, the first such payload on a Starship mission, performed an in-space Raptor engine relight, and executed a controlled reentry.
Elon Musk sheds two new bits of detail on Starship after 13th test launch
Cameras on six of the satellites and onboard sensors captured extensive imagery and data of the shield throughout the flight. The ship then achieved its softest splashdown to date in the Indian Ocean, remaining intact and floating rather than breaking apart or exploding as on prior missions. This allowed drone inspections and continuous telemetry of the heat shield in near-real time.
Post-flight analysis showed the majority of tiles remaining attached with only minor damage and limited plasma streaking at seams. Musk noted that the mission delivered “all the heat shield data we needed and then some.” Combined with visual inspections, these results underpinned his subsequent assessment that the core technical barriers to rapid reusability have been cleared. While refinements will continue, Flight 13 marked a pivotal step toward Starship’s operational future.
SpaceX COO Gwynne Shotwell outlined ambitious plans for Starlink Mobile during the company’s August 4 Earnings call, signaling a direct challenge to U.S. wireless giants like AT&T, T-Mobile, and Verizon.
Shotwell noted that the three companies generate roughly $600 billion in combined annual revenue. “I anticipate us to be able to acquire quite a few of their customers because I think our service will be better,” she said. “We will eliminate dead zones leveraging the satellites in orbit. It will be better during any natural disaster… I’m quite excited about Starlink Mobile.”
SpaceX President & COO Gwynne Shotwell on @Starlink Mobile and its impact on Verizon, AT&T and T-Mobile:
“Roughly, between them, $600 billion a year. I anticipate us to be able to acquire quite a few of their customers. Our service will be better. We will eliminate dead zones… pic.twitter.com/UYZUkrGc0L
— Sawyer Merritt (@SawyerMerritt) August 4, 2026
SpaceX intends to combine its satellite constellation with terrestrial infrastructure. The company has acquired about 65 MHz of spectrum from EchoStar and plans to deploy next-generation Starlink Mobile satellites in 2027, with upgraded service targeted for the end of that year.
Shotwell described the enhanced network, leveraging more satellites and spectrum, as potentially “100 times better” than the current direct-to-cell offering, which already supports basic texting and app-based voice/video in coverage gaps through partnerships. She also indicated plans for low-cost cellular base stations that could integrate with existing Starlink dishes, creating a hybrid system for broader capacity in urban, suburban, and rural areas.
For the general public, Starlink Mobile promises significant advantages. Satellite connectivity can fill gaps where traditional cell towers fail, delivering service in remote locations, mountains, or during outages caused by storms, wildfires, or infrastructure damage—conditions in which ground networks often collapse.
Users could enjoy more consistent coverage without relying solely on dense tower builds, potentially at competitive prices as SpaceX scales. The hybrid approach aims to support full mobile services, including higher-speed data, while working with unmodified smartphones over time.
These developments revive long-standing but unfounded rumors of a Musk-developed “Tesla phone.” Speculative claims of a “Pi Phone” or similar device with built-in Starlink connectivity have circulated for years on social media, often featuring fabricated images and details. Elon Musk has repeatedly denied any such plans, stating Tesla has no intention of entering the smartphone market unless forced by extreme circumstances with app stores.
No official product, filings, or development announcements have ever materialized; the rumors remain hoaxes.
The announcement quickly pressured telecom stocks. Shares of AT&T, Verizon, and T-Mobile fell between roughly 2 and 4 percent in after-hours and premarket trading as investors weighed the competitive threat from a hybrid satellite-terrestrial network.
While execution challenges remain—spectrum deployment, infrastructure rollout, and regulatory hurdles—Shotwell’s remarks mark SpaceX’s clearest signal yet of entering the consumer mobile market as a full competitor.
Space finally faced the people living next to its next Terafab mega-project
SpaceX has solved Starship’s biggest challenge, Elon Musk says
