AST SpaceMobile (NASDAQ: ASTS) is dramatically expanding its footprint at the Midland International Air and Spaceport with a proposed 400,000-square-foot manufacturing facility aimed at ramping up BlueBird satellite production.
The new facility would be nearly five times the size of the original 85,000-square-foot Midland plant that AST SpaceMobile announced back in 2018, signaling a major leap in the company’s production ambitions.
The Midland Development Corporation highlighted the expansion on Tuesday, noting that AST’s Midland operations currently support satellite research, assembly, testing and logistics.
The proposed factory is designed to enable mass production of BlueBird satellites, which are built to deliver cellular broadband directly to standard, unmodified smartphones without requiring any hardware modifications.
Midland officials are offering AST SpaceMobile up to $66 million in performance-based incentives spread across 30 years, with annual payments capped at $3.3 million and no property-tax abatements included.
The deal includes $16 million in ground-lease reimbursements returned to the City of Midland, and officials project the expansion could generate $116 million in local property-tax revenue, representing a 132% return on the city’s incentive investment.
At full buildout, AST SpaceMobile would be required to create 1,800 direct jobs, generate $144 million in annual payroll and make up to $150 million in taxable capital investments, with a further 4,000 regional jobs expected through indirect and induced economic activity.
“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,” said MDC Chairman Brad Bullock. “It’s a pretty amazing opportunity.”
Midland officials estimate the project could lift the metropolitan area’s GDP by 1.8%, with MDC Executive Director Sara Harris noting, “This is significant in terms of economic diversification.”
Harris also highlighted AST’s track record, stating, “In terms of performance, AST has outperformed the requirements of the previous agreements that have been put in place.”
On the operational front, AST SpaceMobile said it remains on track to begin beta service in select markets this year, having already activated 3,000 digital cells across the continental U.S. and expanded its in-orbit network to 13 spacecraft.
Earlier this month, the company launched BlueBirds 11, 12 and 13, whose large phased arrays are designed to deliver peak speeds approaching 200 Mbps directly to standard smartphones, with BlueBirds 14 through 16 reported as nearly ready to ship.
AST SpaceMobile also reiterated its 2026 revenue outlook of $150 million to $200 million, backed by a $1.3 billion backlog and more than $125 million in U.S. government awards.
Despite the operational momentum, ASTS stock declined 6% on Tuesday to close at $67.07, with retail sentiment on Stocktwits flipping to “bearish” from “bullish” levels recorded just a week prior amid low message volume.
Bearish retail traders raised concerns about competitive pressure from Starlink’s direct-to-cell offering, questioned the pace of satellite production, and warned that stock price support driven by retail buying could unwind sharply if sentiment continues to deteriorate.
ASTS shares have nonetheless gained 39% over the past year, reflecting broader investor confidence in the company’s long-term satellite broadband strategy even as short-term sentiment wavers.
