building them on earth and then shipping them up?
We’re not exactly at a loss for land over here.
In situ manufacturing. You just have to send enough to build the thing that builds the factory.
What do you mean, "people" ? I'm pretty sure Musk is only expecting to send self-assembling Optimus robots [1] to do the whole manufacturing.
[1] "pre-order now, expected delivery any time soon"
(Oh, those times where you try to be sarcastic and realize: "wait, maybe that's the actual plan".)