Elon Musk’s upcoming satellite internet service, Starlink, is receiving some opposition from US-based ISPs, with broadband industry groups representing fiber and rural internet providers arguing that the speed of SpaceX’s satellite constellation will likely provide customers with internet speeds that are far too slow. The arguments were presented in a report to the FCC, which claimed that Starlink would hit a capacity shortfall in 2028.
The critical study was commissioned by the Fiber Broadband Association (FBA) and NTCA-The Rural Broadband Association, both of whom are urging the FCC to examine if Starlink should receive funds from the Rural Digital Opportunity Fund (RDOF). The RDOF recently awarded SpaceX $885.51 million over ten years, which should help the private space firm bring Starlink to 642,925 homes and businesses in 35 states.
For its study, the FBA and the NTCA commissioned Cartesian, a business consulting firm, to conduct an engineering analysis of SpaceX’s capability to meet Starlink’s RDOF public interest obligations. Cartesian’s findings were not favorable to SpaceX, with the firm alleging that the Elon Musk-led firm’s internet service will provide speeds that are too slow, among other concerns.
“If SpaceX were to engineer its network to serve only the requisite number of RDOF locations and then serve no other locations (i.e., the network is engineered to serve 70% of 642,925 locations), Cartesian estimates that 56% of SpaceX’s RDOF locations in the low capacity case (average bandwidth usage of 15.3 Mbps per location) and 57% of locations in the high capacity case (average bandwidth usage of 20.8 Mbps per customer)3 will experience service degradation during peak times and not meet the RDOF public interest requirements; further, Cartesian estimates that 25–29% of locations will receive an average of less than 10 Mbps of bandwidth during peak times.”
While the broadband industry group’s letter is strongly worded against Starlink, this does not ensure that the FCC would accept the group’s claims, noted Ars Technica in a report. It isn’t easy to forecast Starlink’s capabilities seven years in advance, especially considering SpaceX’s pace of innovation. Just seven years ago, after all, SpaceX was yet to land and recover a Falcon 9 rocket successfully. Apart from the fact that Starlink may very well be improved as it expands, the FCC may also consider the fact that the Cartesian study was commissioned by entities with a vested interest against Starlink.
SpaceX is yet to issue a statement in response to the Cartesian study. However, the firm did note last week in a petition to the FCC that “Starlink’s performance is not theoretical or experimental.” The Starlink beta currently serves about 10,000 users, and this, according to the private space firm, demonstrates “technical maturity and inherent capacity to support high-throughput, low-latency broadband service to unserved or underserved communities in even the most remote and rural areas of the United States.”
Read the FBA and the NTCA’s letter to the FCC below.
Fba-ntca Rdof Leo Cover Letter 4821-7568-7899 020821 by Simon Alvarez on Scribd
The Teslarati team would appreciate hearing from you. If you have any tips, email us at tips@teslarati.com or reach out to me at maria@teslarati.com.
Elon Musk has acknowledged that early discussions with Taiwan Semiconductor Manufacturing Company (TSMC) could bring the company into his ambitious Terafab semiconductor project, signaling a possible partnership with the world’s leading contract chipmaker.
Musk confirmed that early talks are underway, but as of right now, they are “just discussions.” There is no confirmation of a deal nor dismissal of the possibility of one, leaving open the prospect of one of the largest advanced-chip collaborations under discussion in the U.S.
@wholemars Just discussions, but something may come of it
— Elon Musk (@elonmusk) October 3, 2026
The report that speculated on potential discussions between Terafab and TSMC comes from Tim Culpan, who outlined a few ways the collaboration could operate. One is TSMC using the project as an “anchor customer” for future facilities in Texas, potentially contributing process expertise, operational know-how, or capacity while Terafab provides capital, long-term purchase commitments, or both.
Tesla and SpaceX jointly developed the Terafab project, with Intel already participating on the tech side. Elon Musk announced the project in March, and it intends to produce more than one terawatt of AI compute capacity annually once fully built.
Company statements place the first phase at approximately $16.8 billion in cost, with later filings pointing to a total that could reach well into the tens of billions across multiple stages.
Intel joined the effort in April 2026 and is expected to supply its 14A manufacturing process for the full-scale plant.
Musk has said existing suppliers, including Samsung and TSMC, remain important for near-term needs; Tesla already has production arrangements with Samsung for AI5 and AI6 chips, but that future demand from Optimus robots, Cybercab vehicles, and planned space-based data centers will eventually exceed what the global industry can currently deliver.
Terafab is positioned as the long-term answer to that projected shortfall, and Tesla did something similar during COVID to avoid a chip shortage. This is just a much larger-scale solution.
If the partnership were to materialize, it would add TSMC’s industry-leading strategies to a project that already combines Tesla’s and SpaceX’s capital and offtake with Intel’s process technology. For now, the only public confirmation is Musk’s brief acknowledgement that conversations are occurring.
Tesla’s early strategy for charging units operating within its Robotaxi fleet reveals that the company surely has not lost any of that scrappy DNA that took it from an unlikely success story to the most valuable carmaker in the world.
An observer at a Tesla Supercharger in Austin spotted ten total Robotaxi vehicles arrive: one Cybercab and nine Model Y units. A Tesla employee was waiting at the lot and allowed each unit to park itself; every car that arrived had nobody in it.
Tesla wins FCC approval for wireless Cybercab charging system
The Tesla employee would walk around and plug each car in, adjusting the parking if needed:
So look at what I found. This is how Tesla charges unsupervised robotaxis at a public supercharger. Here is a driverless Cybercab showing up with no one in it. There are 9 other Model Ys that showed up too. A Tesla employee is walking around and plugging each of them in. She also moves the cars if they are not positioned well enough to charge. I love this process. One person charges multiple robotaxis at once
— Abhimanyu Yadav (@WorldlyReviewer) October 3, 2026
It’s a very interesting strategy, but extremely understandable at this early point in the Robotaxi program. It’s only been out for about 15 months, and Cybercab just entered the fleet in early September.
On top of that, Tesla is still working tirelessly on its wireless charging apparatus, and a new patent was just published regarding that product last week.
However, this is just another example of how Tesla still has plenty of that scrappy DNA leftover from the “production hell” days, when CEO Elon Musk slept on the floor of the factory, employees were working crazy hours, Tesla was building Sprung Structures to build cars in, and the company was tiptoeing on the brink of bankruptcy.
@Teslarati Sheer magnitude of the entire production system is hard to appreciate. Almost every element of production is >75% automated. Only wire harnesses & general assembly, which are <10% of production costs, are primarily manual.
— Elon Musk (@elonmusk) October 12, 2020
For now, Tesla is utilizing a simple system for recharging its ride-hailing vehicles, and that is a Tesla employee doing it manually until another solution presents itself. Sure, it’s not the most high-tech thing, and it certainly is not what people might have expected at this point in time, but it works, and it’s keeping the entire suite running.
Tesla is expanding its Robotaxi service hours by pushing the time back by one hour, keeping the ride-hailing service operational until 11 p.m., one hour later than previously.
CEO Elon Musk confirmed the change and offered a specific reason the expansion has been gradual: the system still needs to reliably avoid small pets that are difficult to see after dark, as they commonly blend into the color of the road, especially when they’re grey.
The latest adjustment restores only a fraction of the operating window the service once held. When paid Robotaxi rides began in Austin on June 22, 2025, vehicles ran from 6 a.m. to midnight.
In September 2025, Tesla lengthened the day to a 2 a.m. close, producing a 20-hour window that stayed in place for most of the following year. By early August of this year, the cutoff had already been pulled back; an August 26 update formalized hours of 6 a.m. to 10 p.m. across Austin and several other markets.
The October move to 11 p.m. therefore leaves the Austin day one hour shorter than the original launch schedule and three hours shorter than the 2025 peak.
Musk addressed the constraint directly after the announcement. “The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night,” he wrote. “Literally trying to avoid grey kittens on grey tarmac in the dark.”
Robotaxi operating hours moved from 10pm to 11pm.
The main thing we’re trying to solve is making sure that we don’t run over pets when they’re hard to see at night. Literally trying to avoid grey kittens on grey tarmac in the dark.
— Elon Musk (@elonmusk) October 3, 2026
The example points to a low-contrast perception problem in which a small animal can blend into the road surface under limited lighting.
Tesla’s vehicles rely on cameras and neural-network processing rather than lidar; Musk has previously argued that advanced vision software can extract useful information even in low light by analyzing photon counts, but the pet-detection case remains the stated limiter in later hours.
The modest schedule change arrives alongside faster growth in the purpose-built Cybercab fleet. Texas registration data tracked by observers showed the Austin Cybercab count rising sharply in recent weeks, reaching 169 vehicles after more than 100 were added in a short span.
Tesla has indicated that a broader shift toward 24-hour operation is tied to the upcoming FSD v15 software release expected this month on Robotaxi vehicles. Until that capability is validated for the edge cases Musk described, the company continues to add service time incrementally rather than jumping straight to overnight coverage.
The one-hour extension gives Austin riders a later option for evening trips while the underlying detection work continues.
Elon Musk teases TSMC as potential Terafab partner
Tesla reveals early Robotaxi charging strategy, showing scrappy DNA
