Inside Starbase, Elon Musk’s Controversial New City

Starbase is a newly incorporated Texas city that doubles as the headquarters for SpaceX, an aerospace company founded by Elon Musk. The 1.5–square-mile municipality includes a rocket launch site, manufacturing facilities and fewer than 300 SpaceX employees living in modest houses and Airstream trailers. Following a near-unanimous vote — largely by SpaceX workers — Starbase officially became a city in May 2025. Now, plans are underway to expand it into a full-fledged company town, with additional housing, stores and restaurants to accommodate more workers, who currently commute 40 minutes from Brownsville.

But SpaceX’s growth has upset other local residents who worry about the adverse effects that Starbase is having on the environment, wildlife and public beach access. They’re concerned this newfound autonomy will exacerbate those issues, just as the company was given the green light to increase from five to 25 rocket launches per year.

What Is Starbase? 

Starbase is a newly incorporated city that encompasses a SpaceX complex of the same name. These facilities are where the company designs, manufactures and launches spacecraft under its Starship program. 

For nearly a decade, SpaceX has been slowly building a makeshift company town around its Starbase facilities. The area had roughly 30 homes prior to SpaceX’s arrival, but almost all of the previous homeowners have been bought out by SpaceX. The area’s population has since grown to nearly 500 people, according to the Texas Tribune, with many residents living in Airstream trailers and modular homes.

In a May 3, 2025 election, these residents voted 212 to 6 to incorporate as a city. They also elected a mayor and two commissioners, all of whom ran unopposed. The mayor is Bobby Peden, vice president of test and launch at Starbase. The two commissioners are Jordan Buss, senior director of environmental health and safety at Space X, and Jenna Petrzelka, a former manager of engineering operations at SpaceX. The daily administrative responsibilities will be overseen by Peden, unless the commission votes to hire a city manager.

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Where Is Starbase Located? 

Starbase is located about 25 miles east of Brownsville, Texas on the north side of the U.S.-Mexico border. The city’s boundaries snake along State Highway 4, encompassing Boca Chica Village, part of Boca Chica Beach and vacant parcels where SpaceX has built (or will build) its facilities. State Highway 4 is the only road in and out of Starbase, and locals use it to access Boca Chica Beach.

SpaceX started buying land near Boca Chica Beach in 2012 to establish a spaceport optimized for commercial space operations. The spaceport was announced in 2014. By the time it became operational in 2019, SpaceX had shifted the focus of its local operations to Starship, a reusable spacecraft designed to carry crew and cargo to space.

The company has since expanded its footprint beyond the launch facility to include offices, factories and testing facilities. In 2024, SpaceX CEO Elon Musk announced the company would relocate its headquarters to Starbase from California, citing a new gender identity law. 

What Is the Purpose of Starbase? 

SpaceX wrote in its petition that “incorporating Starbase will streamline the processes required to build the amenities necessary to make the area a world class place to live.”

One month before filing for incorporation, Cameron County officials rejected SpaceX’s zoning request for townhomes, according to the Texas Tribune. A consultant told county commissioners that it has “hundreds of workers on the waitlist to move to campus.” The company already has agreements with the county to manage roads and utilities, and it has established a school and a medical clinic, according to the petition. By incorporating as a city, Starbase will now be able to take over those operations as a public entity.

There are some limits to Starbase’s autonomy, however. When SpaceX tests and launches rockets, it needs county approval to close the area around the Starbase launch site, including State Highway 4 and Boca Chica Beach. The incorporation of Starbase does not give SpaceX the authority to close these roads and parks, but Texas state legislators have proposed a bill that would allow it to do so on weekdays. Cameron County Judge Eddie Treviño, Jr. has opposed giving SpaceX this authority, saying the county has made every effort to accommodate SpaceX’s launch requests.

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Who Will Live in Starbase?

About 260 SpaceX employees live in Starbase with their families, bringing the city’s total population to nearly 500, according to Bloomberg. Another 3,100 workers commute from Brownsville and other nearby cities. Officials would like to increase housing and amenities in the area to bring those employees closer to Starbase.

In addition to offering a school and medical clinic, Starbase is positioning itself for future growth by building a $22 million, 20,000-square-foot community building, a $13 million,16,000-square-foot recreation building and the $15 million “RioWest” development that will bring in a grocery store, retail shops and a 7,700-square-foot restaurant with a deck overlooking the Rio Grande.

Starbase Controversies

Not everyone is happy about the creation of Starbase. The city’s rapid development and close ties to SpaceX — and by extension Elon Musk, who is a polarizing figure in his own right —  have raised concerns about potential environmental impacts such a town could have, as well as the extent of corporate influence over local government.

Environmental Concerns and Legal Battles

Environmentalists have raised concerns about the impact of the additional noise, heat and debris on local wildlife, waterways and protected lands nearby. They are particularly concerned about endangered species like the Kemp’s ridley sea turtle and the piping plover, one of several bird species protected under the Migratory Bird Treaty.

Environmental agencies have cited SpaceX for violations to the Clean Water Act. Environmental advocacy groups have sued SpaceX and the Federal Aviation Administration, saying the company did not do enough to prevent or correct damage to the surrounding environment, which includes wildlife refuges and other protected lands. The FAA has denied the claim.

SpaceX, for its part, says it has implemented “an extensive list of mitigations developed with federal and state agencies.” It also organizes quarterly beach cleanups and partners with Sea Turtle Inc. to find and transport injured sea turtles.

Labor and Safety Conditions

Company towns have long been a feature of industrialization, but few new ones are being built in the United States these days. They are generally considered a relic of a bygone era, when workers lacked the financial means or transportation to choose where they wanted to live. However, in remote areas, companies may still build housing and other amenities to attract and retain workers.

While company towns can serve a practical purpose, they also raise ethical concerns — particularly when an employer doubles as a governing authority, which could create a monopolistic environment. One of the most high-profile examples of this is the Pullman railcar company, which built its own town on the south side of Chicago in 1880. During an economic downturn, Pullman cut wages by 25 percent without reducing rent or the prices at the stores it owned. This led to a labor strike and a boycott of Pullman railcars that disrupted railroad operations across the nation. 

A situation like this is unlikely at Starbase, as SpaceX workers have more autonomy over where they live, work and shop. Still, the Pullman story serves as a cautionary tale about the risks of worker exploitation in company towns.

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