SpaceX no longer looking to swap land with Texas for further Starship development

SpaceX‘s presence down in Starbase has continued to grow over the years as the company ramps up Starship development and flights. However, there has been a slight change in what could have been a massive expansion of SpaceX land, as the company has pulled out of a land-swap deal with the state.

Earlier this year, it was reported that SpaceX was hoping to obtain 43 acres of Boca Chica State Park in exchange for 477 acres of land further north by the Laguna Atascosa National Wildlife Refuge. This deal swap would have given the state a large area in a relatively quiet, tourism-focused part of the region for camping and other recreational activities. Meanwhile, SpaceX would have gained extra space around its Starbase facility for more launch operations.

According to a new report by Bloomberg, as of late September, SpaceX is no longer interested in that deal. The deal faced regional pushback from environmentalists and members of the Carrizo/Comecrudo tribe that claim the land is sacred.

There was no reason in the letter seen by Bloomberg as to why SpaceX was backing out of the deal that had already been approved by the Texas Parks and Wildlife Commission but was held up by legal challenges.

SpaceX has been pushing for the land swap since 2019, when large-scale operations began in the Boca Chica Beach area. Back then, it was widely believed that SpaceX’s Starbase facility would need very large amounts of land to get anywhere close to launching Starship operationally. While the company has acquired a good chunk of the land along State Highway 4, it has done a lot with what it has, so maybe the land is no longer needed.

SpaceX has replaced the large temporary tents with a permanent factory known as Starfactory. Early Block 2 Starship sections have already been rolling out of the facility and into high bays for stacking. SpaceX employees have also begun moving into a newly built office building and using a parking structure nearby instead of parking on the side of the road or in large dirt lots.

Employee housing has begun to overgrow the local area. At the start, SpaceX employees lived in houses purchased from residents of the local Boca Chica Village. While many of the houses remain, Starbase’s industrial area has now surrounded the region. Newly built houses outside the main Starbase facility have sprung up; however, these are likely for high-level executives and managers.

SpaceX has begun using hovercraft to transport SpaceX employees from across the bay in Port Isabel and South Padre Island. This new transportation service cuts the hour-long drive around the bay to minutes.

SpaceX has become the largest employer in the region, which has brought it power both in regional and state politics. However, Elon Musk has now gained a strong ally nationally with President-elect Trump.

There is fear from those that opposed the deal that the sudden dropping could mean Musk and SpaceX are hedging their bets that the company could still obtain the state land, without needing to purchase and then give away the 477 acres.

Speculation Warning

President Trump will likely ease both environmental and regulatory hurdles for the company in order to speed up flight testing. President Trump, alongside other noble Texas politicians, attended a viewing party for Starship Flight 6. With both the federal government and Texas government similarly aligned, SpaceX could be given the land for Starbase expansion.

Although that is getting into conspiracy theory territory, without a reason for the deal being ditched, we’re only left to speculate.