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FCC reversal $885.5M Starlink award has no lawful basis, commissioner says
A Federal Communications Commission (FCC) commissioner, Brenden Carr, called out the FCC for denying Starlink’s $885.5 million infrastructure award. The FCC said that funding the network of Starlink satellites wouldn’t be the best use of limited broadband subsidies.
FCC Chairwoman, Jessica Rosenworcel said that the technology had real promise but that the FCC couldn’t afford to “subsidize ventures that are not delivering the promised speeds or are not likely to meet program requirements.”
Commissioner Carr highly disagreed with this move and shared his thoughts about it on Twitter. He said that its decision to reverse the $885 million infrastructure award was not only concerning, but done without legal justification. And it would leave rural Americans “waiting on the wrong side of the digital divide.”
The FCC’s 2020 award to Starlink secured a deal for the delivery of high-speed Internet service to 642,925 unserved locations.
But the FCC just vaporized that commitment and replace it with… nothing. That’s a decision to leave families on the wrong side of the digital divide.
— Brendan Carr (@BrendanCarrFCC) August 24, 2022
In his statement, Commissioner Carr said that he was surprised to find out by an FCC press release that reversed the $885.5 million infrastructure award that SpaceX had won in 2020. He said that this move mirrored the agency’s “broader set of missteps by costing taxpayer dollars while leaving rural communities behind.”
Commissioner Carr wrote,
“As an initial matter, this is a very curious outcome because the reasons the agency offers for backtracking on this infrastructure decision do not withstand even casual scrutiny. Indeed, the reversal constitutes clear error and plainly exceeds agency authority.”
“First, the FCC’s announcement claims that the agency is acting to ‘avoid extensive delays in providing the needed service to rural areas.’ Yet, that is exactly the outcome that this decision ensures. The FCC’s 2020 award to Starlink secured a commitment for the delivery of high-speed internet service to 642,925 unserved rural homes and businesses across 35 states. By reversing course, the FCC has just chosen to vaporize that commitment and replace it with…nothing. That’s a decision to leave families waiting on the wrong side of the digital divide when we have the technology to get them high-speed service today.”
Commissioner Carr also said that the agency’s excuse that Starlink’s technology is “risky” and “still developing, has no bearing. He noted that the FCC’s own speed testing data shows that Starlink’s speed has “increased significantly year over year.”
He further called the skepticism that the FCC showed “odd” since it is in “direct conflict with the confidence expressed by the other components of the federal government–including the Air Force, which just inked a nearly $2 million deal with Starlink to deliver high-speed Internet service to military bases.”
The FCC criticized Starlink’s pricing and Commissioner Carr also brought this up. “The agency cites Starlink’s price point in denying it this universal service award. Yet right now, the FCC is providing universal service awards for far slower internet services that cost consumers far more.”
Residents in Napakiak, Alaska, the Commissioner said, are paying hundreds of dollars every month for services supported by the FCC’s universal service awards that deliver “speeds less than 1/10th of Starlink’s.”
Commissioner Carr also said that the denial was without a lawful basis since “the 2020 Commission-level decision governing the Starlink award and similar awards did not authorize staff to deny a winning bid based on equipment price point considerations–let alone based on an arbitrary one selectively applied to one winner. As such, the denial here is without a lawful basis.”
Commissioner Carr is also concerned that the FCC’s decision will hurt taxpayers.
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With the launch of a new trim level for the Model Y last night, something almost went unnoticed — the loss of a moniker that Tesla just recently added to a couple of its variants of the all-electric crossover.
Tesla launched the Model Y All-Wheel-Drive last night, competitively priced at $41,990, but void of the luxurious features that are available within the Premium trims.
Upon examination of the car, one thing was missing, and it was noticeable: Tesla dropped the use of the “Standard” moniker to identify its entry-level offerings of the Model Y.
The Standard Model Y vehicles were introduced late last year, primarily to lower the entry price after the U.S. EV tax credit changes were made. Tesla stripped some features like the panoramic glass roof, premium audio, ambient lighting, acoustic-lined glass, and some of the storage.
Last night, it simply switched the configurations away from “Standard” and simply as the Model Y Rear-Wheel-Drive and Model Y All-Wheel-Drive.
There are three plausible reasons for this move, and while it is minor, there must be an answer for why Tesla chose to abandon the name, yet keep the “Premium” in its upper-level offerings.
“Standard” carried a negative connotation in marketing
Words like “Standard” can subtly imply “basic,” “bare-bones,” or “cheap” to consumers, especially when directly contrasted with “Premium” on the configurator or website. Dropping it avoids making the entry-level Model Y feel inferior or low-end, even though it’s designed for affordability.
Tesla likely wanted the base trim to sound neutral and spec-focused (e.g., just “RWD” highlights drivetrain rather than feature level), while “Premium” continues to signal desirable upgrades, encouraging upsells to higher-margin variants.
Simplifying the overall naming structure for less confusion
The initial “Standard vs. Premium” split (plus Performance) created a somewhat clunky hierarchy, especially as Tesla added more variants like Standard Long Range in some markets or the new AWD base.
Removing “Standard” streamlines things to a more straightforward progression (RWD → AWD → Premium RWD/AWD → Performance), making the lineup easier to understand at a glance. This aligns with Tesla’s history of iterative naming tweaks to reduce buyer hesitation.
Elevating brand perception and protecting perceived value
Keeping “Premium” reinforces that the bulk of the Model Y lineup (especially the popular Long Range models) remains a premium product with desirable features like better noise insulation, upgraded interiors, and tech.
Eliminating “Standard” prevents any dilution of the Tesla brand’s upscale image—particularly important in a competitive EV market—while the entry-level variants can quietly exist as accessible “RWD/AWD” options without drawing attention to them being decontented versions.
You can check out the differences between the “Standard” and “Premium” Model Y vehicles below:
@teslarati There are some BIG differences between the Tesla Model Y Standard and Tesla Model Y Premium #tesla #teslamodely ♬ Sia – Xeptemper
Elon Musk
Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
A prominent Tesla (NASDAQ:TSLA) bull has stated that the odds are rising that Tesla could eventually merge with SpaceX and xAI, following Elon Musk’s confirmation that the private space company has combined with his artificial intelligence startup.
Dan Ives of Wedbush Securities wrote on Tuesday that there is a growing chance Tesla could be merged in some form with SpaceX and xAI over the next 12 to 18 months.
“In our view there is a growing chance that Tesla will eventually be merged in some form into SpaceX/xAI over time. The view is this growing AI ecosystem will focus on Space and Earth together…..and Musk will look to combine forces,” Ives wrote in a post on X.
Ives’ comments followed confirmation from Elon Musk late Monday that SpaceX has merged with xAI. Musk stated that the merger creates a vertically integrated platform that combines AI, rockets, satellite internet, communications, and real-time data.
In a post on SpaceX’s official website, Elon Musk added that the combined company is aimed at enabling space-based AI compute, stating that within two to three years, space could become the lowest-cost environment for generating AI processing power. The transaction reportedly values the combined SpaceX-xAI entity at roughly $1.25 trillion.
Tesla, for its part, has already increased its exposure to xAI, announcing a $2 billion investment in the startup last week in its Q4 and FY 2025 update letter.
While merger speculation has intensified, notable complications could emerge if SpaceX/xAI does merge with Tesla, as noted in a report from Investors Business Daily.
SpaceX holds major U.S. government contracts, including with the Department of Defense and NASA, and xAI’s Grok is being used by the U.S. Department of War. Tesla, for its part, maintains extensive operations in China through Gigafactory Shanghai and its Megapack facility.
Elon Musk
Elon Musk and xAI donate generators to TN amid historic power outages
The donation comes as thousands of households have gone days without electricity amid freezing temperatures.
Elon Musk has donated hundreds of generators to Tennessee residents still without power following a historic winter storm, as per an update from Governor Bill Lee.
The donation comes as thousands of households have gone days without electricity amid freezing temperatures.
Musk donates generators
As noted in a report from WSMV4, the historic storm that hit Tennessee resulted in hundreds of thousands of residents experiencing a power outage at the end of January. Thousands are still living without power or heat in freezing temperatures for up to nine days.
As per TN Gov. Bill Lee in a post on X, Elon Musk and xAI have donated hundreds of generators to assist residents in affected areas. “Tennesseans without power need immediate help. I’m deeply grateful to @elonmusk & @xAI for going above & beyond to support Tennesseans by donating hundreds of generators to fill the gap, & I value their continued partnership to solve problems & support communities across our state,” he wrote in his post.
Tennessee officials have stated that recovery efforts remain ongoing as crews work to restore power and address damage caused by the winter storm. The generators are expected to provide temporary relief for residents facing power outages during freezing conditions.
Tesla Powerwalls may follow
Musk publicly responded to the governor’s post while hinting that additional help may be on the way. This time, the additional support would be coming from Musk’s electric vehicle company, Tesla.
“You’re most welcome. We’re working on providing Tesla Powerwalls too,” Musk wrote in his response to the official.
Even before Elon Musk’s comment, Tesla had already extended help to affected customers in Mississippi and Tennessee. In a post on X, the official Tesla Charging account noted that all Superchargers in the two states are online, and free Supercharging has been enabled to help those in areas that are affected by persistent power outages.
These include Grenada, Tupelo, Corinth, Southhaven, and Horn Lake in Mississippi and several Supercharging sites in Memphis, Tennessee.
Tesla brings closure to Model Y moniker with launch of new trim level
Tesla bull sees odds rising of Tesla merger after Musk confirms SpaceX-xAI deal
