Octaria Software, which serves startups to established small and medium-sized ventures with digital solutions, has expanded out of state. Photo via Pexels

Many innovators don't have the tools in their toolkit to make their tech dream a reality, but one Houston company might be able to help.

Octaria Software is focused on helping businesses, from the very seedlings of startups to established small and medium-sized ventures, to effectively go digital. Though it may include building an app, CEO and founder Greg Micek II says that isn’t all the only service that Octaria provides. His job, essentially is to supply the advice of a highly technical software architect to non-technical founders.

“There's a lot of outsourcing firms out there that work really well if you already have a tech lead as an employee. What about those people that don't have a CTO? What do they do? And so I realized there was a place in the market to give them a little bit of help, and really support them and kind of help build and grow from there,” Micek tells InnovationMap.

As he puts it, he can step in as a fractional CTO for companies who aren’t yet ready to make a full-time hire. A year and a half ago, Micek moved Octaria Software to The Cannon Downtown, but his 15-person distributed team also included director of product management Matthew Lowinger, based in the Washington, DC area. Last month, Lowinger helped to open Octaria’s second physical office in Tysons Corner, Virginia, (with an official address of McLean, Virginia) about half an hour outside the bigger city.

“There are so many startups emerging there,” Lowinger says. “There is a reason that Tysons Corner is considered the tech capital of DC. There's so many companies that are headquartered and launched right in our backyard. There's some really cool expansion opportunities where we can help out more founders, more entrepreneurs, more small- to medium-sized businesses than ever before.”

One example of a business that benefited from working with Octaria Software is an app called Lokum. Founder Joy Ademuyewo is a Houston-based certified registered nurse anesthetist (CRNA). Realizing that staffing was still decidedly twentieth-century, Ademuyewo took it upon herself to create a company that would spawn an app to streamline hiring for hospitals in need of experts like her.

“When she came to us initially, she had some UI and UX designs, but she didn't have any software at that point in time,” recalls Micek. “We've been able to work with her to release a web and mobile application and it's just been really great working with her and seeing her get her initial customers and help her grow from there.”

But not every founder comes to Micek and his team as well prepared as Ademuyewo did. Some just have an idea, in which case, Lowinger says they start with a product management sprint that will validate assumptions that the company will be building the right thing for its potential customers.

From there, they go into facets of design before approaching the build of the app. It’s a financially conservative way to do business that favors the needs of the founder, but is still focused on making headway. Micek says that they have taken products to market in as little as three months, though he admits, “It varies wildly.”

For nontechnical founders who are ready to test their ideas, Octaria hopes to provide a supportive means to make their dream an app.

Houston is a top-paying city in Texas for software engineers. Photo by Laurence Dutton/Getty Images

Houston cashes in with some of the highest salaries in Texas for this in-demand tech job

top in tech

It really pays to be a software engineer in Houston, new data shows.

According to figures collected by the professional social network Blind, Houston appears at No. 2 on this list of the best-paying Texas cities for software engineers. Here, the average annual salary is $111,625, and the average annual compensation is $137,987.

“Long before Austin became a magnet for jobs, there was Houston. Long a hub for the aerospace, defense, and energy industries, the aptly named Space City has been a go-to place for a job in tech,” Blind says.

Among the Houston tech employers mentioned by Blind are Aspen Technology, Cisco, Intel, Microsoft, and SAP.

Software engineers, also known as software developers, create and test apps, computer software, and related technology. The U.S. Bureau of Labor Statistics identifies software developer as one of the most in-demand jobs for 2020 to 2030. The bureau projects the need for an additional 409,500 software developers in the U.S. during that period.

“In nearly every industry, we’re facing a global talent shortage,” says KMS Technology, an Atlanta-based provider of software development, testing, and consulting services. “When it comes to software development, however, the shortage is perhaps the most severe. Companies are struggling to find qualified software engineers to fill jobs, and it’s happening in record numbers.”

Therefore, software engineers continue to be among the highest-paid workers in the country.

Elsewhere it Texas, and not surprisingly given its reputation as a tech hub, Austin ranks as the best-paying city in Texas for software engineers, per Blind. There, the annual base salary for a software engineer is $128,524, and the average annual compensation package (including salary, stock options, bonuses, and other goodies) is $171,981.

“It may be no surprise that Austin is No. 1, as the state capital is home to some of the largest tech giants,” Blind says.

Blind rattles off several tech companies with a big presence there: Apple, Amazon, Dell, Facebook, Google, PayPal, Tesla, and TikTok.

The typical pay for a software engineer in Austin stands in stark contrast to the typical pay for all workers here. Estimates vary widely, but PayScale puts the average local salary at $74,000 a year.

Meanwhile, Dallas ranks third on the Blind list. In Big D, the average annual salary is $113,517, and the average annual compensation is $132,788.

Prominent tech employers in Dallas include FireEye, Match, Palo Alto Networks, and Texas Instruments, according to Blind.

The Dallas suburb of Plano comes in at No. 4. The average annual salary for a software engineer in Plano is $107,251, while the average annual compensation is $121,127.

“North Texas is experiencing strong job growth, and Plano has benefited from the boom,” Blind says.

High-profile tech employers in Plano include IBM, Intuit, Juniper Networks, Red Hat, and Splunk, according to Blind.

Rounding out the top five in Texas is San Antonio. There, the average annual salary for a software engineer is $94,626, and the average annual compensation is $105,254.

San Antonio tech employers highlighted by Blind include Fiserv, iHeartMedia, Oracle, Rackspace, and ServiceNow.

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This article originally ran on CultureMap.

A new hub on Rice University campus, Houston receives national rankings, and more local innovation news. Photo courtesy of Rice University

Shell commits to $10M carbon initiative with Rice University, Houston startup acquired by Honeywell, and more innovation news

Short Stories

Even toward the end of the year and amid the holiday season, Houston's innovation news can be a lot to keep up with. Here are seven short stories of Houston innovation — from an exit for a Houston startup and a multimillion-dollar clean energy commitment from Shell to new national recognitions for Houston and 2020 plans unveiled for MassChallenge in Houston.

Shell commits $10 million to new Carbon Hub at Rice University

Matteo Pasquali will lead the new hub at Rice University. Courtesy of Rice University

Rice University has introduced its Shell-backed Carbon Hub — a research initiative to innovate zero-emissions technologies. According to a news release, Shell has committed to a $10 million arrangement for the hub.

"Trying to address climate change is like playing whack-a-mole; you think you're making something better, and you realize that made something else get worse," says Carbon Hub director, Matteo Pasquali, in the release. "For example, you make cars more fuel efficient by removing weight, and then realize you've increased CO2 emissions by using more aluminum and carbon fibers. Or you try to fix CO2 into a useful product, and you realize you now need much more energy than you had gotten by making the CO2 in the first place."

The plan is to "fundamentally change how the world uses hydrocarbons," reads the release. Rather than burning hydrocarbons for fuel, creating carbon dioxide, the hydrocarbons "will be split to make clean-burning hydrogen fuel and solid carbon materials that can be used to make buildings, cars, clothing and more."

Through the partnership with Shell — and other potential partners — the hub will help fund and lead $100 million of science and engineering initiatives. The inaugural meeting for the hub is expected to be early next year and will be hosted by The Center for Energy Studies at Rice's Baker Institute for Public Policy.

"Providing energy to the world's population in an economically and environmentally sustainable manner is the global energy challenge," says Ken Medlock, senior director of the Center for Energy Studies, in the release. "In part, this will require new technologies and forward-looking, creative thinking, which is exactly what Carbon Hub offers."

Houston-based Rebellion Photonics acquired by Honeywell

Photo via rebellionphotonics.com

Innovative gas monitoring technology company, Rebellion Photonics, founded by Allison Sawyer and Robert Kester in Houston in 2009, has been acquired by Honeywell for an undisclosed amount.

The business will be rolled into Honeywell's Safety and Productivity Solutions business, as well as through Honeywell's Performance Materials and Technologies business, according to a press release.

"Honeywell is an amazing company and a recognized leader in our industry. We are excited to be part of their world-class family," Kester, who serves as CEO of Rebellion Photonics, says in the release. "Automated visual monitoring is the future of gas leak detection. Combining our products with Honeywell's platform will make this the new industry standard for safety and environmental monitoring globally."

MassChallenge to announce details of its second Houston cohort

Photo courtesy of MassChallenge

MassChallenge Texas has released new details of its second cohort in Houston. The zero equity startup accelerator based in downtown will run its second cohort from June to September of next year. Up to 100 startups will be selected for the Houston program, and another cohort of up to 100 startups will run along the same timeline in Austin.

On the line for prizes this year is six months of free office space, experts and mentors, the MassChallenge curriculum, access to top corporate leaders, as well as cash prizes and in-kind support — valued at over $500,000.

Both Austin and Houston will celebrate the launch of the two programs on January 29 — Houston's event will take place at the Four Seasons Hotel (1300 Lamar St.) from 5:30 to 7:30 pm.

MassChallenge recently announced its new home in The Cannon's Downtown Launch Pad in partnership with Amegy Bank.

Houston named in Inc.'s top 50 cities to start a business

houston skyline

Getty Images

Houston just made it onto the list of the top 50 cities to start a business, according to Surge Cities index, Inc., and Startup Genome. Coming in at No. 45, the Bayou City ranked behind Austin (No. 1) and Dallas (No. 29).

"Houston wants to be known as the Third Coast, a place that is both a business and cultural hub," the blurb on Inc. reads. "A place where people want to be. And this city, one of the most diverse in the country, is well on its way."

The report highlights Houston's historic hold on the oil and gas industry, the Texas Medical Center's established presence, and the space innovation happening at NASA. Roger Griesmeyer, a partner at Hunton Andrews Kurth, says in the article that Houston has low regulations and taxes coupled with "a highly educated populace, great weather, and a bunch of money."

"There's such diversity and a confluence of talent and opportunity in one place," says Griesmeyer in the article. "Houston is selling a lifestyle brand with all the resources to bear."

Houston was ranked highly on three factors:

  • No. 23 for job creation
  • No. 20 for wage growth
  • No. 25 for population growth

Accenture announces finalists for Houston-based competition

Courtesy of Accenture

In February, Accenture's Houston innovation hub will host the fourth annual Accenture HealthTech Innovation Challenge. Eleven companies have been named finalists and are headed to Houston in the new year.

"This annual HealthTech challenges creates an exciting opportunity to connect healthcare incumbents with emerging businesses to drive health system evolution focused on improving the lives of consumers and clinicians by enhancing access, affordability, quality and experience," says Brian Kalis, managing director of digital health and innovation services at Accenture, in the news release. "We are all looking forward to the final round and awards ceremony on February 6, 2020 in Houston when the finalists will present to an exclusive panel of healthcare executive judges."

No Texas companies were selected as finalists. The 11 selected startups are: New York-based Capital Rx, Minneapolis-based Carrot Health, San Francisco-based Cleo, Boston-based DynamiCare Health, San Francisco-based InsightRX, United Kingdom-based Lantum, Washington, D.C.-based Mira, Denver-based Orderly Health, New York City-based Paloma Health, St. Louis-based TCARE, and Seattle-based Xealth.

Houston area ranked the 18th best-paying city for software developers

Chart via heytutor.com

According to a new report from HeyTutor.com, the Houston-The Woodlands-Sugar Land metroplex is the 18th best-paying city for software developers. The report factored in salary and employment statistics for Houston and other U.S. metropolitan areas using data from the U.S. Bureau of Labor Statistics Occupational Employment Statistics.

Houston's mean adjusted software developer salary is $107,672 annually, according to the report. Here are some other interesting statistics regarding the Houston area from the data:

  • Mean software developer salary (adjusted): $107,672
  • Mean software developer salary (unadjusted): $109,503 — compared to $109,914 nationally
  • Mean salary across all occupations (unadjusted): $54,290 — compared to $51,960 nationally
  • Number of software developer jobs: 20,400 — compared to $51,960 nationally
  • Median home price: $205,600 — compared to $226,800 nationally

Business idea competition calls for applications

Photo courtesy of LILIE

The Liu Idea Lab for Innovation and Entrepreneurship has announced the applications for the 2020 H. Albert Napier Rice Launch Challenge business idea competition, which will take place on March 25. On the line is $60,000 in prize money to the teams, and the applications are open to Rice-affiliated teams until 11:59 pm on January 20.

To apply, click here.

Coding camps continue to grow and expand in Houston. The most recent comes from the University of Texas. Getty Images

UT coding camp emerges in Houston as the city grows its tech and innovation ecosystem

Up to code

As Houston's innovation ecosystem grows, the need for tech talent grows too. It's why the University of Texas and workforce accelerator Trilogy Education decided to bring a series of coding boot camps designed to teach Houstonians the skills they need to excel in the fast-paced world of the tech economy to town.

"Too many working adults lack the skills to succeed in the digital economy," says Liliya Spinazzola, the senior director for professional education and strategic initiatives at the Texas Extended Campus of The University of Texas at Austin. "And that means that employers are lacking a talent pool."

The Houston Coding Boot Camp aims to change all that. The 24-week sessions teach web development and coding skills, allowing adults to take classes even as they're working. That kind of flexibility helps them increase their knowledge as they continue to build career paths.

Houston's seen a good amount of growth when it comes to new coding camps. Digital Crafts, for instance, grew from an inaugural class of eight students to 125 people in just two years. Women Who Code saw a need for female coders in Houston to have a network, and now the city has a newly launched chapter.

Student success
So far, 260 students have completed the programs, going on to work at companies such as JP Morgan, IBM, and Deloitte.

One of those is Rebecca Gemeinhardt, now a full stack developer at Shell. She graduated with her bachelor's in graphic arts from the Kansas City Art Institute in 2017, and found that she missed being in a classroom. When she started the boot camp, she was immediately drawn to the challenge the subject matter offered, as well as the flexible schedule.

"The boot camp was just as formidable as the curriculum promised but extremely fulfilling," she says. "Going into boot camp, I didn't tell anyone I was doing it — what if I struggled and couldn't get through it? I kept it a secret until I found the confidence to identify as a developer."

Once she completed the program, she was hired at Shell.

"My life had changed so much in just six months but definitely for the better," Gemeinhardt says. "By focusing on the ability to adopt new technologies, [the coding boot camp instructors] left us with the invaluable skill of being adaptable and fast-learning full stack developers. This has helped me immensely at my current position as we are always incorporating new languages to our architecture depending on individual project needs."

Filling the need
Spinazzola says the camps deliberately try to create environments that foster the level of problem solving and exploration Gemeinhardt describes. The program partners with employers to discover what skills are most needed, and tailors the curriculum to dovetail with them. She says the skills most in demand right now are coding, cyber security, IT project management, and digital marketing.

"We also look at job description data here in Texas to see what skills are listed," she says. "And while students are in the program, we have a robust network that engages with them upfront, talking to them about what jobs are out there. And we host career fairs where they can show off their portfolios and discuss their skills set with potential employers."

Spinazzola says that students come from all walks of life and employment backgrounds, and that 26 percent of the participants are women. With 25 students per boot camp session, the small classes make for deep instruction. UT offers between three and fours sessions in Houston each year. She says that she finds participants are looking to either break into the tech sector, learn new skills or re-train to be able to advance their careers. The average age of students is somewhere in the low-30s, she says.

"We had a student who owned a cooking school and wanted to start a new career," she says. "[Rebecca] trained as a graphic artist and wanted to be a developer. One student shut down his medical practice and says that he wanted to learn coding so that he could go work for a pharmaceutical company. To me, that's the beauty of this program. These skills are in demand, and our students are able to take what they already know and enhance their abilities to be able to take on new career paths."

Silver Ehiwario flipped careers a while back, and now she hopes to help other women with that process. Courtesy of Silver Ehiwario

Houston software developer helps bring Women Who Code to town

Featured Innovator

Silver Ehiwario worked to attain two chemical engineering degrees and had been in the industry in Nigeria for seven years when she decided she wanted to change her career path.

"I started thinking about making a switch when I found out I had this interest in being creative and building solutions for businesses so that they can become more effective and grow," Ehiwario says. "I like to be able to put my thoughts into the computer and see people use it."

She's not alone. Ehiwario and a few like-minded women are responsible for bringing the California-based nonprofit organization, Women Who Code, to Houston. On March 5, the Houston chapter celebrated its launch. At the event, the organization engaged its new members and asked them what they wanted from the organization. The feedback they received will drive the programing and events they will focus on, Ehiwario says.

"At the end of the day, I called for anyone open to mentoring. We had a whole lot of turnout — people were ready to inspire other women with what they do best," Ehiwario says. "I don't think there is a whole lot of other groups out there where your interest is represented and worked on."

Ehiwario spoke with InnovationMap about what she's excited about for Women Who Code in Houston and how she managed to change careers from a chemical engineer to a software developer.

InnovationMap: Did you find it easy to find resources for starting a new career in coding?

Silver Ehiwario: It wasn't easy — maybe I didn't know what I wanted. I searched online for something I could actually do where I wanted to do it. I decided to try the University of Texas' bootcamp here in Houston. It was very hard at first. I was very new to coding. I never used the computer other than for emails and basic work.

IM: How did you first get involved with Women Who Code?

SE: I had a colleague in the bootcamp who introduced me to it. I found out more online and it kind of aligned with what I wanted and I liked the idea of having support. In 2017, I applied to be a director so that we could have a network here. Everything started happening here at the end of 2018.

IM: Who is a part of the Houston chapter?

SE: There are seven of us. Julie Jonak, Roopa Rajala, Shefali Kapoor-Patel, Wanjun Zhang, Aditi Singh, Saima Rajwani, and myself.

IM: What's the program like?

SE: What draws me to Women Who Code is the mission and the vision. The mission is to inspire women to excel in their technology careers, and the vision is to have a world where women are representative of technical executives, founders, chairmen, and software engineer. We have people old and young. Our code of conduct has to do with inclusiveness — if you love technology, you're welcomed.

IM: Why is it important to Houston that Women Who Code have a chapter here?

SE: Houston is a huge community. I know there's a lot of tech people out here. We are able to see a lot of people are changing their careers from what they have done before — just like I changed mine. We need communities where they can be inspired. I've met people who just finished a coding bootcamp, are job hunting, and are kind of depressed. This community will be able to inspire them.

We need Women Who Code in Houston to support these women in tech — to close the gender gap and create a good working environment. If women succeed, girls will see that and it will give them that encouragement and motivation.

IM: How does someone get involved?

SE: Online. Sign up to be a member, join our Facebook network, and our LinkedIn network. We'll soon roll out our schedule of when we meet.

IM: Advice for someone wanting to switch careers?

SE: I like talking about this a lot. If you want to change your career to something in the tech industry, I would just say to take it one step at a time. Find one of the bootcamps out there and get connected. And join a network like Women Who Code so you can have a network and support after you leave that bootcamp.

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Portions of this interview have been edited.

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Baylor College of Medicine launches VC fund to invest in biotech startups

fresh funding

Houston’s Baylor College of Medicine just unveiled a new venture capital fund that backs early-stage biotech startups—and it’s already made its first investment.

BCM Legacy Fund I, funded by philanthropies, invested an undisclosed amount in Houston biotech startup Nemea Therapeutics. Nemea, a spinout of the Baylor College of Medicine and Germany’s Lead Discovery Center, is developing an oral drug to treat metastatic triple-negative breast cancer that no longer responds to currently available therapies.

This type of aggressive cancer spreads from the breast to other areas of the body, such as the bones, liver, lungs or brain. Roughly 38,000 to 57,000 Americans are diagnosed each year with metastatic triple-negative breast cancer. One study showed about half of patients survive past the one-year mark following diagnosis and about one-third survive two years.

“Baylor College of Medicine’s laboratories produce discoveries with the potential to change patients’ lives, and too many of them stall where academic funding ends and private investment has not yet begun,” Dr. Jakub Tolar, president, CEO and executive dean of the Baylor College of Medicine, said in a press release. “The BCM Legacy Fund fills that gap, giving our scientists a path to advance their discoveries to patients.”

The National Institutes of Health awards more than $36 billion per year for biomedical research in the U.S., Baylor said. But some biomedical discoveries “never leave the starting line because they don’t yet fit the economics of venture capital,” the college said.

“The forefront of a new model”

The BCM Legacy Fund aggregates philanthropic capital from private foundations and donor-advised funds. It then invests in startups so they can move beyond that starting line and into later-stage investment rounds. The Greater Houston Community Foundation is the fund’s philanthropic partner.

“It’s exciting to be on the forefront of a new model for philanthropic capital,” said Houston entrepreneur and investor Burton Hanson, managing partner of the fund.

“Not only do we hope to solve a real problem by advancing these therapies to the patients who need them most, but we also hope this model will inspire others in the city and beyond toward philanthropic creativity and a posture of ‘I sacrifice; we win.’”

The fund expects to invest in about 15 early-stage startups over a five-year span. Baylor declined to divulge the amount of money in the fund and the size of the investment in Nemea.

Nemea’s “world-class chemistry”

Hanson oversees the Baylor fund alongside Chicago investor Steve Lehmann, who led the University of Chicago’s Innovation Fund.

Lehmann said Nemea, the fund’s first portfolio company, “has world-class chemistry, Baylor biology, and patients with no good options. Our job is to fund the experiments that carry it to the next handoff, so that industry and later-stage investors can take it from there.”

Based at Houston’s massive Texas Medical Center, Nemea plans to start clinical trials next year in collaboration with Baylor’s Lester and Sue Smith Breast Center.

Nemea previously received $9 million from the Lead Discovery Center and a $1.6 million grant from Baylor. Last year, the startup said it was seeking $25 million to $30 million in seed and Series A funding.

Debra McCoy of Houston, a former managing director at BlackRock and former partner at Bain & Co., and Paul Thomas, co-founder and CEO of Spring-based benefits manager Luscinia Health, sit on the Baylor fund’s governing board. Dr. Paul Klotman, former president, CEO and executive dean of Baylor, is a senior strategic adviser.

How does the fund find investment targets?

The Baylor Legacy Fund relies on two tools to help unearth early-stage biotech startups:

  • High-resolution “innovation maps” of research institutions. These maps surface hidden clusters of innovation, identify rising-star researchers and tie pockets of “innovation supply” at Baylor to areas of “innovation demand” in biotech.
  • AI-enhanced due diligence. AI agents assist with due diligence of early-stage biotech startups. The fund says the platform “distills the frameworks we’ve developed over a decade of teaching and investing into a flexible … diligence environment.”

MD Anderson unveils $3.4B expansion with two new Houston cancer care facilities

major expansion

The cutting edge of cancer-fighting technology and science is getting even sharper after MD Anderson announced last week that it will open two new facilities in the Texas Medical Center within the next five years. Inspiration Tower and Prism will expand MD Anderson’s annual patient load in the TMC to 250,000 annually and will incorporate a variety of new techniques.

The $3.4 billion project will add 2 million square feet to MD Anderson's TMC footprint, bringing its total campus size to 22 million square feet by 2032. Located at the corner of Fannin Street and Holcombe Boulevard, the cancer center says the two new facilities will serve as its new "front door" to the TMC.

“Every detail of these buildings, from the technology to the treatment rooms, was designed around our patients who will receive their care in them and our employees who will work in them. The facilities will serve as a physical representation of hope for the patients and their families who will walk through the doors,” Dr. Jeffrey E. Lee, president ad interim of UT MD Anderson, said in a news release. “Inspiration Tower and Prism are the future of cancer care, and we are grateful for the longstanding support and guidance we’ve received from the UT System Board of Regents to bring these projects to life. These facilities are part of the most impactful capital expansion in UT MD Anderson’s history.”

Prism is especially exciting as it will represent fully half of the linear accelerator treatment in the TMC. Linear accelerator is a radiation treatment that uses magnetically charged fields to deliver targeted external radiation therapy, like shooting cancer with a rail gun. The treatment is safer and has fewer side effects than older radiation treatments.

In addition, Prism will contain 12 MRI machines, four CT scanners, two PET-CT units, 18 radiation vaults and seven radiation simulators. Patient comfort has also been put at a premium with multiple gardens and roof overlooks.

“Every patient we treat deserves an environment that reflects the excellence of the care they receive at UT MD Anderson,” Chris McKee, executive vice president and chief strategy officer at UT MD Anderson, added in the release. “Our new facilities will be innovative, agile, adaptable and beautiful, and they will allow us to care for more patients, more effectively – in an environment that enhances healing and well-being. We are building for our future and for every patient who will be counting on us.”

Prism is slated to open in 2030.

Inspiration Tower will have 25 floors of surgical, diagnostic, and treatment services. At 1.4 million square feet, it’s currently expected to be the largest cancer-specific treatment facility in the United States. The tower will be divided into units for specific types of cancer, making it easy to integrate the advancing research being done all over Houston.

Like Prism, Inspiration Tower is specifically designed to offer comfort and reassurance, with more garden space, terraces, and beautiful scenery to ease patient distress. It is expected to open in 2032.

Tesla will pull the plug on Cybertruck production at Texas factory in 2027

Tesla Talk

Tesla’s Cybertruck, the hulking, stainless-steel pickup that inspired devotion and derision with its science-fiction looks, will cease production next year.

CEO Elon Musk announced the model’s demise Friday, November 6, with a curt post on X, his social media site, simply noting production of the vehicle “will be winding down” around the middle of 2027 at its facility outside Austin, Texas. Musk said the move was to allow increased production of its Cybercab robotaxi.

For the Cybertruck, a pet project of Musk who insisted it was Tesla’s best product, it marks an unceremonious end to one of the auto industry’s most ballyhooed debuts.

“Few vehicles in history have generated as much attention,” said Armen Hareyan, whose Torque News site covers autos. “The Cybertruck became a cultural symbol – loved, mocked and impossible to ignore.”

The Cybertruck rolled onto the scene in a dramatic unveiling in 2019, when a Tesla designer hurled a metal ball at the vehicle to demonstrate its supposedly unbreakable glass, only to see it shatter. He repeated the stunt on another window of the truck only to shatter that one, too.

Even as some critics scoffed, Musk was steadfast.

“I just wanted to make a futuristic battle tank — something that looks like it could come out of ‘Blade Runner’ or ‘Aliens’ or something like that but was also highly functional,” he told Automotive News. He called it “a better sports car than a Porsche 911” and “a better truck than an F-150.”

It struck some as the perfect vehicular reflection of the brash, convention-busting Musk.

“A really controversial vehicle unveiled by a controversial individual into a market where none of the electric trucks have been able to really capture demand,” said Spencer Penn, a former Tesla executive who left the company before the Cybertruck’s launch and now heads software developer LightSource.

Penn remembered watching the unveiling and feeling initially revolted by the sight of the Cybertruck, calling its appearance “madness.” But the more he looked at it, the more his opinion changed. He signed up for a pre-sale reservation, though ended up not getting a Cybertruck when Musk’s promises of a price tag under $40,000 went unmet and the first trucks sold for double or more. Penn called the Cybertruck part of Tesla’s adventurous spirit that drives innovation.

“Some of these bets work and some of these bets don’t,” he said.

While the decision to end Cybertruck production may be driven by sales realities, it's also a reflection of Tesla’s shift to autonomous vehicles, on which Musk is betting the company’s future.

Musk once forecast he’d make 250,000 Cybertrucks a year. Kelley Blue Book estimated Tesla sold just 20,237 of the vehicles last year, down about half from the year prior. Sales through the end of September this year were down another 28%, according to Kelley Blue Book.

If the imposing, sharp-angled, dystopian appearance of the Cybertruck weren’t enough to turn many potential buyers away, Musk did so himself by allying with a panoply of right-wing figures, most notably U.S. President Donald Trump. He alienated some customers as his image morphed from eccentric innovator to polarizing force trading his billions for political influence.

Once-passionate Tesla drivers rushed to sell off their cars, or slapped stickers on the bumper declaring, “I bought this before Elon went crazy.” Organizers staged demonstrations outside Tesla showrooms and urged investors to dump shares of the company’s stock. Anger spilled into violence, with Molotov cocktails hurled at Tesla vehicles, charging stations set ablaze, and dealerships covered in graffiti.

Lovers of the Cybertruck became targets, too, subjected to shouts of “Nazi!” and extended middle fingers.

Ross Blankenship is one of them. When he first laid eyes on the Cybertruck, he felt transported to a world from his childhood, when he would play “Halo,” the sci-fi video game. He had to have it.

“I had that sort of child in me wanting to be part of something cool that would change the future of automotive,” Blankenship said in a call from his Cybertruck as he drove through Sunnyside, Colorado. Even as Blankenship found he agreed with Musk on politics, he hated seeing a vehicle he loved turned into a political symbol. “I never bought it for any other reason than the fascination with the future technology of trucks … so that was a little heartbreaking.”

He would buy another Cybertruck again in a heartbeat, calling its end “a sad moment.”