Midland is offering AST up to $66 million in performance-based incentives over 30 years, with no property-tax abatements.
- AST SpaceMobile plans a 400,000-square-foot Midland facility to ramp up mass production of BlueBird satellites.
- The proposed factory would be nearly five times larger than AST’s original 85,000-square-foot Midland plant.
- AST remains on track for beta service this year after activating 3,000 U.S. digital cells and expanding its orbital network to 13 spacecraft.
AST SpaceMobile (ASTS) is scaling up its Midland spaceport footprint with a massive 400,000-square-foot facility to ramp up BlueBird satellite production, but the expansion has not been enough to shake bearish retail sentiment.
ASTS stock declined 6% on Tuesday to end at $67.07.
AST SpaceMobile Expands Midland Facility
The Midland Development Corporation (MDC) spotlighted AST SpaceMobile’s expansion at the Midland International Air and Spaceport on Tuesday, where the company conducts satellite research, assembly, testing and logistics. The new facility will support mass production of BlueBird satellites, which will provide cellular broadband directly to standard, unmodified smartphones.
At 400,000 square feet, the proposed factory would be nearly five times the size of the 85,000-square-foot Midland plant AST SpaceMobile announced in 2018. “In terms of performance, AST has outperformed the requirements of the previous agreements that have been put in place,” MDC Executive Director Sara Harris said last month.
ASTS Expansion Could Lift Midland GDP
At full buildout, AST SpaceMobile would be required to create 1,800 jobs, generate $144 million in annual payroll and make up to $150 million in taxable capital investments. The project is also expected to support 4,000 regional jobs through indirect and induced economic activity. The roles would span satellite assembly, engineering, manufacturing, warehousing, supply-chain operations and production support.
“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,” MDC Chairman Brad Bullock said last month. “It’s a pretty amazing opportunity.”
Midland officials estimate the project could lift the metropolitan area’s GDP by 1.8%, helping diversify an economy historically dependent on oil and gas. “This is significant in terms of economic diversification,” Harris said.
Midland Bets $66M On ASTS
The expansion agreement offers AST SpaceMobile up to $66 million in incentives over 30 years, but payments depend on the company meeting performance milestones and are capped at $3.3 million annually.
The arrangement includes $16 million in ground-lease reimbursements returned to the City of Midland but no property-tax abatements. Officials estimate the expansion could generate $116 million in local property-tax revenue, representing a projected 132% return on the city’s incentive investment.
ASTS Readies Next BlueBird Satellites
AST SpaceMobile said it remains on track to begin beta service in select markets this year after activating 3,000 digital cells across the continental U.S. and expanding its in-orbit network to 13 spacecraft.
Earlier this month, the company launched BlueBirds 11, 12 and 13, whose massive phased arrays are designed to deliver peak speeds approaching 200 Mbps directly to standard smartphones. BlueBirds 14 through 16 are nearly ready to ship, while additional satellites are in production. 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.
How Do Retail Traders Feel About ASTS?
On Stocktwits, retail sentiment for ASTS flipped to ‘bearish’ from ‘bullish’ levels a week ago amid ‘low’ message volume.
One bearish user claimed ASTS shares were being supported by retail traders repeatedly putting their paychecks into the stock and warned that the price could fall sharply once they capitulate.
View this Stocktwits post
Another user questioned how AST SpaceMobile could compete with Starlink’s direct-to-cell offering, given its rival’s greater scale and ability to deploy satellites more quickly. A third challenged the company’s “mass production,” alleging that BlueBirds 14 through 16 remained unfinished and criticizing the company for presenting partially assembled satellites as production progress.
View this Stocktwits post
ASTS stock has risen 39% over the past year.
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