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SpaceX Starlink, Starship programs crush funding goals, raise $2 billion

SpaceX's Starship and Starlink programs are about to get a massive boost. (Richard Angle)

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On the heels of a successful ~$350 million fundraising round, SpaceX has crushed its own expectations of a second, far more ambitious fundraiser, likely ensuring stable Starship and Starlink development for years to come.

First reported by Bloomberg on July 23rd, SpaceX’s second investment round of 2020 initially pursued $1 billion in funding, boosting the company’s valuation to $44 billion. Less than four weeks later, an August 18th SEC filing revealed that SpaceX had more than doubled its offering after it received overwhelming interest from prospective investors.

According to the regulatory document, SpaceX has now secured an incredibly $1.9 billion of a $2.06 billion of new funding for its Starlink and Starship programs, likely guaranteeing the health of both expensive development programs for 12-18+ months. Alternatively, the company could feasibly speed up either or both programs by a substantial amount with such a massive capital injection, shrinking the time required for Starship to reach orbit and begin operational launches and for Starlink to begin serving customers and generating revenue.

SpaceX has secured another ~$570 million to continue developing its ambitious Starlink and Starship programs. (SpaceX)

Prior to August 2020, SpaceX had raised a total of ~$3.4 billion over ~12 years of major funding rounds. In 2015, Google and Fidelity invested $1 billion in SpaceX – a round that remained the company’s biggest until now. Once again primarily driven by Fidelity, if SpaceX successfully closes the $2 billion series it kicked off last month, the company’s funding to date will jump nearly 60% in a single round.

Very few companies in history can claim to have closed an oversubscribed $2 billion funding round, making it easy to say that SpaceX is currently one of the hottest private investment opportunities in the world. There are several likely reasons that help explain why.

The track record of companies run by Elon Musk likely plays a huge role in investor confidence. Against all odds and in the face of hordes of detractors and naysayers, Tesla has shaped itself into the world’s premier electric vehicle (EV) manufacturer and managed to do so while still becoming a profitable (or at least sustainable) company. As a result, the value of $TSLA has exploded in 2019 and 2020, turning it into one of the most lucrative investments in years.

SpaceX has proven itself to be just as disruptive – if not more so – in the aerospace industry, designing, building, and fielding industry-leading rockets and spacecraft that are years ahead of “competition” and doing so with cost efficiency that competitors and national space agencies did not believe was possible. As a result, SpaceX now owns a vast majority of the global commercial launch market, is the only entity on Earth operating orbital-class reusable rockets, and is the only company capable of both building and launching its own satellite constellations.

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From an investment perspective, the commercial launch market likely makes most eyes glaze over. Starlink, however, has the potential to tap into a large portion of a global communications market worth hundreds of billions to more than a trillion dollars. Building a satellite constellation large and capable enough to do so is an extraordinarily expensive ordeal no matter how efficient SpaceX is, but once it’s even partially complete, it could almost effortlessly magnify the company’s annual revenue by 5-10x.

Starlink could be a revolutionary source of self-sustaining income. (SpaceX)

Once Starlink is able to serve millions of customers, it could easily become self-sustaining. With tens of millions of customers, it could become a veritable cash cow, generating >$6 billion in annual revenue on annual upkeep and operating costs of $1-2 billion at most (conservatively estimating 24 Starlink launches per year for $50 million each).

This doesn’t even account for Starship, which could effectively create whole new markets for space access if SpaceX is able to achieve its ambitious design goals. For Starlink, though, Starship would be equally game-changing by making constellation deployment at least ~7 times more cost-effective than Falcon 9 (~400 vs. ~60 satellites per launch).

Regardless, with at least $1.9 billion soon to be in the bank, it should be clear that any doubt that SpaceX has the resources it needs to sustain its Starlink and Starship development programs for one or several more years is woefully misplaced.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Elon Musk is setting high expectations for Tesla AI5 and AI6 chips

Musk confirmed this week that Tesla had just completed a design review for AI5.

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Image used with permission for Teslarati. (Credit: Tom Cross)

Elon Musk is setting high expectations for Tesla’s in-house silicon program. As per Musk in a set of recent posts on X, Tesla’s AI5 and AI6 will be game-changing. 

Tesla’s AI5 and AI6 are incredibly important for Tesla’s future, which will likely be built on the back of very high-volume products like Optimus and the Cybercab.

Musk sets high expectations

Musk confirmed this week that Tesla had just completed a design review for AI5, which will initially be manufactured by TSMC in Taiwan before production ramps in Arizona. As per Musk, consolidating Tesla’s chip design efforts into one architecture has allowed the company to focus its silicon talent on delivering a single high-performance platform. 

“Just had a great design review today with the Tesla AI5 chip design team! This is going to be an epic chip. And AI6 to follow has a shot at being the best (by) AI chip by far. Switching from doing 2 chip architectures to 1 means all our silicon talent is focused on making 1 incredible chip. No-brainer in retrospect,” Musk wrote in his post.

In a follow-up post, the CEO also stated that the company’s upcoming AI5 chip “will probably be the best inference chip of any kind” for models below ~250 billion parameters, with the “lowest cost silicon and best performance per watt.” Musk added that AI6, which follows AI5, “has a shot at being the best AI chip by far.”

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AI6 as Dojo’s successor

While AI5 is nearing production, Musk has also pointed to AI6 as Tesla’s next major target. The chip will be manufactured at Samsung’s upcoming Texas facility, part of a multibillion-dollar deal to support Tesla’s next-generation products such as the Cybercab and the Optimus humanoid robot. Musk also noted that AI6 could effectively replace Project Dojo as Tesla’s training platform, given its potential for both inference and training workloads.

Industry veterans have echoed this view, with former Apple and Rivian engineer Phil Beisel suggesting that “AI6 is now Dojo.” Musk appeared to agree, responding with a “bullseye” emoji. Musk has also noted on X that he would personally be walking the line in Samsung’s upcoming AI6 factory in Texas, to make sure that the facility’s output is accelerated according to Tesla’s requirements. 

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Elon Musk: Neuralink could restore partial vision to the blind next year

The executive posted the update on social media platform X.

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Credit: Steve Jurvetson/Twitter

Elon Musk has suggested that Neuralink could attempt to restore limited sight to visually impaired patients as early as 2026. 

The executive posted the update on social media platform X amid news of Neuralink’s first successful Telepathy implants outside the United States. 

Blindsight trials

In a response to a post from Neuralink’s official X account about its first Canadian patients, Musk wrote that the company is “Aiming to restore (limited) sight to the completely blind next year.” The update was well-received on social media, as the device would most likely provide notable quality of life improvements to patients. Neuralink’s current implant, Telepathy, is already changing lives today, and the same will likely be true for Blindsight.

This was not the first time that Musk has provided an update to Neuralink’s Blindsight trials. Earlier this year, Musk told the Qatar Economic Forum that the first human implantation of Blindsight could occur early 2026, potentially in the United Arab Emirates. Neuralink has explored collaboration with the Cleveland Clinic Abu Dhabi to perform the initial surgery. Blindsight has also received a “breakthrough device” designation from the US FDA, hinting at the implant’s development.

Blindsight’s potential

Musk has previously described Blindsight as Neuralink’s brain-computer interface (BCI) designed to restore vision. During Neuralink’s 2022 Show & Tell event, Musk stated that Blindsight would target the brain’s visual cortex, bypassing damaged eyes entirely to generate visual perception. This means that vision could be restored even for people who were born blind. 

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“The first two applications we’re going to aim for in humans are restoring vision, and I think this is notable in that even if someone has never had vision ever, like they were born blind, we believe we can still restore vision. The visual part of the cortex is still there. Even if they’ve never seen before, we’re confident they could see,” Musk said.

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Sweden Mediation Institute throws in the towel on Tesla vs IF Metall union conflict

After nearly two years, the union’s strike has become the country’s longest labor dispute to date.

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Credit: @NicklasNilsso14/X

Sweden’s Mediation Institute has formally ended its efforts to resolve the conflict between Tesla Sweden and trade union IF Metall. After nearly two years, the union’s strike has become the country’s longest labor dispute to date. 

Launched 677 days ago by the IF Metall union, the strike was intended to push Tesla Sweden into signing a collective agreement. Tesla Sweden, however, remained firm, maintaining that its working conditions are already better than union standards.

Mediation Institute withdraws

The state-run Mediation Institute, which had been involved early in the strike, confirmed this week that it was officially closing the case. The two parties have had several meetings, but neither side has been able to come to an agreement.

Director General Irene Wennemo described the effort as unprecedented in difficulty in a comment to Ekot. “We have tried in every possible way to get the parties to come closer to each other in a way that allows this conflict to end. But now we have come to the end of the road and have realized that it is just as good to end the case,” she told the Swedish outlet.

Union signals flexibility

The mediators noted in their final report that Tesla Sweden had limited authority in the talks, with key decisions appearing to rest with executives in the United States. The situation, they stated, created barriers to compromise that made the conflict “unlike anything else.” Tesla has maintained throughout that its Swedish workers already receive strong benefits and protections without the need for a formal collective agreement, as noted in a CarUp report.

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IF Metall, for its part, has begun hinting that it was open to alternatives. This was highlighted by Union Chair Marie Nilsson, who noted that while the preferred outcome of the country’s longest strike in history is a signed agreement, “other alternative solutions” are now on the table. “You can do it in different ways. The easiest thing would be to sign a collective agreement. But when that is not possible, we have to find other alternative solutions as well, so we are open to discussion,” the union official stated.

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