AST SpaceMobile (ASTS) is moving forward with a sweeping 400,000-square-foot facility at the Midland International Air and Spaceport to ramp up mass production of its BlueBird satellites.
The proposed factory would be nearly five times larger than the 85,000-square-foot Midland plant AST SpaceMobile first announced back in 2018, signaling a dramatic acceleration in its manufacturing ambitions.
The Midland Development Corporation spotlighted the expansion on Tuesday, noting the spaceport location already serves as the company’s hub for satellite research, assembly, testing and logistics operations.
BlueBird satellites are designed to deliver cellular broadband directly to standard, unmodified smartphones, a capability that sits at the core of AST SpaceMobile’s commercial strategy.
MDC Executive Director Sara Harris noted the company’s strong track record with the city, saying, “In terms of performance, AST has outperformed the requirements of the previous agreements that have been put in place.”
At full buildout, AST SpaceMobile would be required to create 1,800 jobs, generate $144 million in annual payroll and commit up to $150 million in taxable capital investments across the facility.
The project is also expected to support 4,000 regional jobs through indirect and induced economic activity, spanning satellite assembly, engineering, manufacturing, warehousing and supply-chain operations.
MDC Chairman Brad Bullock described the scale of the opportunity in stark terms, saying, “If they meet all of these projections, they perhaps will be the largest private employer and have nothing to do with the oil and gas industry. It’s a pretty amazing opportunity.”
Midland officials estimate the expansion could lift the metropolitan area’s GDP by 1.8%, providing meaningful diversification for a region historically reliant on energy production.
Harris emphasized the broader significance of that shift, stating, “This is significant in terms of economic diversification,” as the city works to broaden its economic base beyond oil and gas revenues.
The expansion agreement offers AST SpaceMobile up to $66 million in performance-based incentives over 30 years, with annual payments capped at $3.3 million and no property-tax abatements included in the deal.
Officials project the expansion could generate $116 million in local property-tax revenue, representing a 132% projected return on the city’s incentive investment over the agreement’s lifespan.
On the operational front, AST SpaceMobile said it remains on track to launch beta service in select markets this year after activating 3,000 digital cells across the continental United States and expanding its orbital network to 13 spacecraft.
The company recently launched BlueBirds 11, 12 and 13, whose massive phased arrays are designed to deliver peak speeds approaching 200 Mbps directly to standard smartphones, with BlueBirds 14 through 16 nearly ready to ship.
AST also reiterated its $150 million to $200 million 2026 revenue outlook, backed by a $1.3 billion backlog and more than $125 million in U.S. government awards, reinforcing confidence in its near-term financial trajectory.
Despite the positive operational and expansion news, ASTS stock declined 6% on Tuesday, closing at $67.07, as retail sentiment on Stocktwits flipped to “bearish” from “bullish” levels recorded just a week earlier.
Some retail traders questioned how AST SpaceMobile could compete with Starlink’s direct-to-cell offering given its rival’s greater scale and faster satellite deployment capabilities.
Others challenged the company’s “mass production” claims, alleging that BlueBirds 14 through 16 remained unfinished and criticizing AST for presenting partially assembled satellites as meaningful production progress.
Even with Tuesday’s pullback, ASTS stock has risen 39% over the past year, reflecting the broader investor enthusiasm that has carried the stock despite ongoing skepticism from portions of the retail community.
