Inside Starbase, Elon Musk’s Controversial New City

A de facto company town has been growing around SpaceX’s south Texas facilities for the past decade. Now an official city, Starbase plans to build housing and shops for its workers — but not everyone is excited for its growth.

Written by Jeff Rumage
A photograph of SpaceX's Starbase facility and launch site.
Image: Built In / Shutterstock
UPDATED BY
Brennan Whitfield | Nov 26, 2025
REVIEWED BY
Ellen Glover | Nov 26, 2025
Summary: Incorporated in May 2025, Starbase is a Texas city that serves as SpaceX’s headquarters and launch site for its Starship program. Home to nearly 500 people, mostly SpaceX employees, the city plans major expansions but faces criticism over environmental impacts and corporate control of local governance.

Starbase is a Texas city that doubles as the headquarters for SpaceX, an aerospace company founded by Elon Musk. Incorporated in May 2025, 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 an industrial hub in South Texas that serves as the headquarters for SpaceX’s Starship program, where the company builds, tests and launches its spacecraft. Starbase became an official city in May 2025, following a near-unanimous vote cast primarily by SpaceX employees living and working in the area.

 

What Is Starbase? 

Starbase is a Texas city incorporated in May 2025 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 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 also signed formal agreements in September 2025 to make Cameron County sheriff’s deputies an official police force, and Cameron County jails as the destination for anyone arrested within city limits.

 

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.

On June 18, 2025, a SpaceX rocket exploded on a Starbase test stand after experiencing “a major anomaly,” according to the company. SpaceX reported that nobody was injured when the explosion launched a fireball into the Texas night sky. The failure of Starship’s tenth flight test followed a series of incidents involving the model, including explosions and loss of communications. Though the company reported there were no hazards to nearby communities, it also asked people not to approach the site. Because of this, residents of nearby Brownsville, Texas have raised environmental concerns, especially for the wildlife refuge that surrounds Starbase.

On November 21, 2025, another SpaceX rocket exploded at the Starbase site due to an “anomaly during gas system pressure testing.” Though similarly to the June 2025 explosion, there were no injuries reported.

June 2025 SpaceX Explosion Raises Environmental Concerns. | Video: ABC News

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.

 

Notable Starbase Developments

Below are some of the most significant operational developments of Starbase, the critical hub for SpaceX’s Starship program:

SpaceX Starship Booster 18 Explodes at Starbase During Testing (November 2025)

SpaceX’s Starship Super Heavy booster (known as Booster 18 and the company’s first fully-stacked Block 3 Super Heavy Booster) exploded during testing at Starbase. The incident occurred during routine gas system pressure testing, causing the ship’s liquid oxygen tank to rupture and partially blow apart the lower section of the vehicle. SpaceX confirmed that the booster had no propellant loaded and no engines installed at the time, resulting in no injuries to personnel.

SpaceX Starship 36 Explodes at Starbase During Testing (June 2025)

SpaceX’s Starship 36 exploded on the test stand at Starbase while preparing for its tenth flight test, leading to complete loss of the spacecraft. Preliminary data suggested the failure was triggered by a rupture in a pressurized nitrogen tank within the spacecraft’s nosecone. Despite the explosion, SpaceX reported that a safety clear area was successfully maintained, ensuring no personnel were injured.

Starbase Voted to Become an Official City (May 2025)

Residents of the area surrounding the Starbase launch site voted to incorporate the community as the official City of Starbase. Nearly all of the few hundred eligible voters were SpaceX employees or connected to the company. This passing vote granted the Starbase municipality a local government with a mayor and two commissioners, paving the way for Starbase to have increased control over its operations and municipal affairs.

SpaceX Headquarters Announced to be Moved to Starbase (July 2024)

Elon Musk announced the relocation of the SpaceX headquarters from Hawthorne, California, to the Starbase facility in Texas. Musk stated on X that his decision was triggered by a California law signed in July 2024 that prohibited school districts and staff from notifying anyone of a child’s sexuality or gender identification change without their consent, calling it the “final straw.” This move placed SpaceX’s official headquarters at its rocket launch site in Texas, adding to Musk’s growing corporate presence in the Texas area (which already included Tesla).

Elon Musk Announces the “Starbase” Name for Texas Launch Site (March 2021)

Elon Musk announced the intention to designate the Boca Chica area and its development as “Starbase” via an X post, stating he was “creating the city of Starbase, Texas.” This declaration, which Musk immediately linked to the greater goal of reaching Mars, formalized the name for the launch and production facility. The announcement was quickly followed by SpaceX making a formal inquiry to Cameron County officials regarding the legal steps required to incorporate the area into a new city under the name “Starbase.”

SpaceX Begins Starship Testing at Boca Chica Beach (March 2019)

SpaceX began static ground testing of the initial Starship prototype, known as Starhopper, at the Boca Chica Beach site. These initial tests involved pressurizing the vehicle’s tanks with inert fluids like liquid nitrogen to check its structural integrity and ensure the new hardware could handle cryogenic conditions. This phase of static testing was crucial for validating the basic design before moving on to powering up the developing Raptor engine.

SpaceX Texas Launch Site Announced (August 2014)

The SpaceX Texas launch site was announced and became formally located at Boca Chica Beach near Brownsville in Texas. This came shortly after the U.S. Federal Aviation Administration (FAA) issued its Record of Decision in July 2014, approving SpaceX’s proposal after concluding the multi-year environmental assessment process.

Frequently Asked Questions

Yes, you can visit SpaceX’s Starbase facility. While the general public cannot tour the inside of the production and launch areas, much of the site is visible from State Highway 4. You can also get fairly close to Starbase’s launch tower and other facilities by walking on Boca Chica Beach and the dunes nearby.

Yes, Starbase is home to about 500 people — most of whom are SpaceX employees and their families. The city plans to add more housing, restaurants, stores, schools and other amenities to accommodate the thousands more SpaceX employees who currently commute in from the surrounding area.

You can track SpaceX Starbase launches using the SpaceXNow app, America Space’s Launch Tracker or RocketLaunch.Live. You can also follow SpaceX on X for live broadcasts and updates.

After being sued alongside the company by environmental groups over alleged ecological harm, the FAA announced that increasing SpaceX launches at Starbase from five to 25 per year would have “no significant impact” on the surrounding environment — provided the company takes additional steps to protect the local area

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