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Starlink in talks with UK to become part of $6.9B “Project Gigabit” program

Credit: u/seancreynolds/Reddit

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Elon Musk’s Starlink seems poised to receive some extra funding as part of “Project Gigabit,” the United Kingdom’s new $6.9 billion internet infrastructure program.

In a statement to CNBC, a person reportedly familiar with the matter noted that UK Minister for Digital Infrastructure Matt Warman has met with Starlink leadership as part of ongoing discussions about Project Gigabit. Starlink’s potential participation in the internet infrastructure program has received some support, with UK Culture Secretary Oliver Dowden stating that he believes the satellite-based system is one of the best options available today that could provide high-speed internet access to remote areas

The first phase of Project Gigabit was launched by the UK on Friday. The program, which is expected to cost $6.9 billion (£5 billion), aims to improve the internet access of over one million homes and businesses across the country. For its first phase, the program would gather proposed solutions from companies that provide internet service using a variety of means, such as satellites and other “high-altitude platforms.” One of these companies seems to be SpaceX. 

In a way, Project Gigabit’s priorities run parallel with that of Starlink. In the program’s official webpage, the UK government noted that Project Gigabit would be rolled out rapidly, and it would prioritize areas that are suffering from slow internet connections today.

“The government-funded projects will prioritize areas that currently have slow connections and which would otherwise have been left behind in broadband companies’ rollout plans,” the program’s official webpage noted. 

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These are things that Starlink is designed for, as the system is intended for quick and easy installations anywhere in the globe. Starlink is also just in its early stages, with over 1,200 satellites now in orbit. SpaceX is aggressively ramping the system’s size, however, with Elon Musk estimating that Starlink should be capable of providing global internet access by next year. 

Project Gigabit has the potential to provide SpaceX with even more government subsidies. Starlink, after all, was awarded almost $900 million in federal subsidies in the United States late last year under the FCC’s broadband auction. SpaceX received a notable portion of the $9.2 billion auction, which incited in some sharp words and opposition from entities such as DISH Network, other traditional internet providers, and the National Rural Electric Cooperative Association (NRECA). In a statement, NRECA CEO Jim Matheson dismissed the satellite internet system as a “science experiment” with “completely unproven technology.”

Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla dispels reports of ‘sales suspension’ in California

“This was a “consumer protection” order about the use of the term “Autopilot” in a case where not one single customer came forward to say there’s a problem.

Sales in California will continue uninterrupted.”

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Credit: Tesla

Tesla has dispelled reports that it is facing a thirty-day sales suspension in California after the state’s Department of Motor Vehicles (DMV) issued a penalty to the company after a judge ruled it “misled consumers about its driver-assistance technology.”

On Tuesday, Bloomberg reported that the California DMV was planning to adopt the penalty but decided to put it on ice for ninety days, giving Tesla an opportunity to “come into compliance.”

Tesla enters interesting situation with Full Self-Driving in California

Tesla responded to the report on Tuesday evening, after it came out, stating that this was a “consumer protection” order that was brought up over its use of the term “Autopilot.”

The company said “not one single customer came forward to say there’s a problem,” yet a judge and the DMV determined it was, so they want to apply the penalty if Tesla doesn’t oblige.

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However, Tesla said that its sales operations in California “will continue uninterrupted.”

It confirmed this in an X post on Tuesday night:

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The report and the decision by the DMV and Judge involved sparked outrage from the Tesla community, who stated that it should do its best to get out of California.

One X post said California “didn’t deserve” what Tesla had done for it in terms of employment, engineering, and innovation.

Tesla has used Autopilot and Full Self-Driving for years, but it did add the term “(Supervised)” to the end of the FSD suite earlier this year, potentially aiming to protect itself from instances like this one.

This is the first primary dispute over the terminology of Full Self-Driving, but it has undergone some scrutiny at the federal level, as some government officials have claimed the suite has “deceptive” naming. Previous Transportation Secretary Pete Buttigieg was vocally critical of the use of the name “Full Self-Driving,” as well as “Autopilot.”

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New EV tax credit rule could impact many EV buyers

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date. However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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tesla showroom
Credit: Tesla

Tesla owners could be impacted by a new EV tax credit rule, which seems to be a new hoop to jump through for those who benefited from the “extension,” which allowed orderers to take delivery after the loss of the $7,500 discount.

After the Trump Administration initiated the phase-out of the $7,500 EV tax credit, many were happy to see the rules had been changed slightly, as deliveries could occur after the September 30 cutoff as long as orders were placed before the end of that month.

However, there appears to be a new threshold that EV buyers will have to go through, and it will impact their ability to get the credit, at least at the Point of Sale, for now.

Delivery must be completed by the end of the year, and buyers must take possession of the car by December 31, 2025, or they will lose the tax credit. The U.S. government will be closing the tax credit portal, which allows people to claim the credit at the Point of Sale.

We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date.

However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.

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If not, the order can still go through, but the buyer will not be able to claim the tax credit, meaning they will pay full price for the vehicle.

This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.

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Elon Musk takes latest barb at Bill Gates over Tesla short position

Bill Gates placed a massive short bet against Tesla of ~1% of our total shares, which might have cost him over $10B by now

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Elon Musk took his latest barb at former Microsoft CEO Bill Gates over his short position against the company, which the two have had some tensions over for a number of years.

Gates admitted to Musk several years ago through a text message that he still held a short position against his sustainable car and energy company. Ironically, Gates had contacted Musk to explore philanthropic opportunities.

Elon Musk explains Bill Gates beef: He ‘placed a massive bet on Tesla dying’

Musk said he could not take the request seriously, especially as Gates was hoping to make money on the downfall of the one company taking EVs seriously.

The Tesla frontman has continued to take shots at Gates over the years from time to time, but the latest comment came as Musk’s net worth swelled to over $600 billion. He became the first person ever to reach that threshold earlier this week, when Tesla shares increased due to Robotaxi testing without any occupants.

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Musk refreshed everyone’s memory with the recent post, stating that if Gates still has his short position against Tesla, he would have lost over $10 billion by now:

Just a month ago, in mid-November, Musk issued his final warning to Gates over the short position, speculating whether the former Microsoft frontman had still held the bet against Tesla.

“If Gates hasn’t fully closed out the crazy short position he has held against Tesla for ~8 years, he had better do so soon,” Musk said. This came in response to The Gates Foundation dumping 65 percent of its Microsoft position.

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Tesla CEO Elon Musk sends final warning to Bill Gates over short position

Musk’s involvement in the U.S. government also drew criticism from Gates, as he said that the reductions proposed by DOGE against U.S.A.I.D. were “stunning” and could cause “millions of additional deaths of kids.”

“Gates is a huge liar,” Musk responded.

It is not known whether Gates still holds his Tesla short position.

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