Texas Governor Greg Abbott announced Wednesday that SpaceX has received a $17.3 million grant from the Texas Semiconductor Innovation Fund. The grant will be used to to expand SpaceX’s Bastrop complex. 

SpaceX’s Bastrop complex is headlined by its Starlink factory, which is currently capable of producing 15,000 dishes per day, as per a video published by the private space company on social media platform X.

The Grant

The investment is expected to develop SpaceX’s semiconductor research and development (R&D) and advanced packaging facility in Bastrop. The expansion is expected to create over 400 jobs and over $280 million in capital investment, as per a press release from the Office of the Texas Governor.

Bastrop’s Planned Expansion

SpaceX plans to grow its Bastrop site by one million square feet over the next three years, focusing on Starlink kit production, including advanced silicon components. The proposed project includes printed circuit boards (PCBs), a semiconductor failure analysis lab, and advanced packaging for panel level packaging (PLP). Once complete, SpaceX’s Bastrop facility will stand as the largest PCB and PLP facility in terms North America.

What They Are Saying

SpaceX President Gwynne Shotwell praised Texas’ support, saying, “Incredible innovation and high-tech manufacturing is happening in Texas as a direct result of Governor Abbott’s leadership and the Texas Semiconductor Innovation Fund initiative. We love Texas. SpaceX is investing hundreds of millions of dollars into our Bastrop facility. This grant will help continue to expand Bastrop’s manufacturing for Starlink to help connect even more people across the state and around the world with high-speed, low-latency internet.”

Texas Governor Abbott also shared his thoughts on the matter: “Texas connects the nation and the world with the most advanced technologies manufactured right here in our great state. I congratulate SpaceX on their more than $280 million investment in this Texas-sized expansion of their semiconductor R&D and advanced packaging facility in Bastrop, which will be the largest of its kind in North America. 

“Working together with innovative industry leaders like SpaceX, Texas will continue to rank No. 1 for semiconductor research and high-tech manufacturing and secure critical domestic supply chains as we build a stronger, more prosperous Texas than ever before,” he said.

Tesla stock (NASDAQ: TSLA) surged over 7 percent on Wednesday, canceling out some of the losses it has felt this week.

It has been a less-than-ideal start for Tesla in 2025, as the company has wiped out all of its gains felt from the victorious election campaign of President Donald Trump. The stock is down 34 percent so far this year.

The losses have mostly been felt due to reports of decreased demand due to pushback against CEO Elon Musk and his support of President Trump, as well as investor concern over the CEO’s personal use of time between the Department of Government Efficiency (DOGE) and Tesla itself.

In a note this week from Wedbush, analyst Dan Ives wrote:

“Musk needs to step up as Tesla CEO at this critical juncture. In a nutshell, the word ‘balance’ has been missing with Elon Musk and his ability to run Tesla as CEO….while instead focusing all of his energy and time driving his DOGE initiative within the Trump Administration. Since Trump’s White House 2nd term kicked off in January, we have seen Musk and Trump connected at the hip with Musk essentially living at the White House and Mar-a-Lago in Palm Beach. There has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares. Trump getting elected President was a huge moment for Musk and Tesla in our view as this will create the fast track for an autonomous federal roadmap…however the DOGE efforts have now intertwined Tesla into this brewing political firestorm.”

Wednesday’s slight bump for Tesla shares is likely related to the support the company received from President Trump yesterday, who purchased a Model S sedan at the White House and pledged to pay for it with a check.

President Donald Trump buys a Tesla at the White House – Here’s which model he chose

The move was one that signaled a buying spree from high-profile Republicans, including Sean Hannity, among others, who announced their support for Musk and Tesla:

As promised yesterday, I Just ordered my new self driving Tesla! Over 1000HP, 0-60 in 2.0 seconds!

Details on how to win the Tesla of your Choice soon on https://t.co/9hkyEX1UVi! pic.twitter.com/PSCCtUsXK2

— Sean Hannity 🇺🇸 (@seanhannity) March 11, 2025

Tesla shares closed at $248.09 on Wednesday, up 7.59%.

Speaker Mike Johnson said Congress will support a probe into Tesla vandalism, which was ruled as “domestic terrorism” by President Donald Trump yesterday at the White House.

Speaker Johnson said that Congress will be investigating the sources of attacks against Tesla’s showrooms and customers, which have sparked national outrage as anti-Musk and Trump narratives have resulted in everything from simple vandalism to life-threatening attacks.

A post on X from Johnson read:

“The heroic work of Elon Musk has so panicked the radical Left that they’re now calling him “racist”(?!) and engaging in domestic terrorism to attack Tesla owners and their vehicles! Congress will investigate the sources of these attacks and help the DOJ & FBI ensure those responsible are prosecuted to the fullest extent of the law.”

The announcement comes just after Musk’s visit to the White House to allow President Trump the opportunity to look over a handful of Tesla vehicles for purchase.

Trump, who chose to buy a Deep Red Tesla Model S, which employees will drive, said during the latter half of the meeting in front of the White House that attacks against Tesla will be considered domestic terrorism.

The heroic work of @elonmusk has so panicked the radical Left that they’re now calling him “racist”(?!) and engaging in domestic terrorism to attack Tesla owners and their vehicles!

Congress will investigate the sources of these attacks and help the DOJ & FBI ensure those… pic.twitter.com/mA9gx8baJS

— Speaker Mike Johnson (@SpeakerJohnson) March 12, 2025

This could be due to Musk’s capacity as a government employee, as he is overseeing the operations of the Department of Government Efficiency (DOGE). It also could be a simple sign of support for Musk, who has been President Trump’s right-hand man since the campaign trail.

Moving forward, we hope to see more combatance against the vandalism against Tesla showrooms, vehicles, employees, and owners. This could be the first step, and early perpetrators who are caught damaging property should be held to suffer the consequences of their actions.