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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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Tesla has officially shown that it is eyeing two new states for Robotaxi operation in the U.S., as it hopes to add the new areas to its ever-growing list of places where the suite is either active or in the testing phase.
Tesla first launched its Robotaxi suite in Austin, Texas, in late June. It expanded the suite to the San Francisco Bay Area just a month later. Since then, it has not launched any public rides in any other states, but it has gained several approvals for early testing.
In preparation for operation in new states, Tesla routinely lists job postings on its Careers website, which helps align potential employees with opportunities ahead of regulatory approvals. This is a strategy that allows Tesla to start operations immediately upon licensing for testing.
Tesla started hiring Vehicle Operators for Autopilot in Arizona and Nevada months before the company gained any sort of approvals from state governments for Robotaxi. However, those approvals eventually came in the form of testing licenses, which allow the company to perform validation ahead of its public launch.
Tesla begins validating Robotaxi in a new area, hinting at expansion
Now, Tesla has posted job listings for Vehicle Operators for Autopilot in two new states: Colorado and Illinois. The Colorado job listing is located in Aurora, a suburb of Denver. Tesla is looking for Robotaxi operators in Chicago as well.
These postings hint toward Tesla’s continuing efforts to expand Robotaxi to new places. Earlier this year, CEO Elon Musk said the company would like to have Robotaxi available to at least half of the U.S. population.
It has expanded significantly since its initial launch in late June, but it is still a far way off from where Tesla would like it to be by year’s end.
So far, Tesla has job listings for Autopilot Vehicle Operators in Arizona, California, Texas, Florida, Colorado, Nevada, and Illinois.
Tesla’s advertising strategy has taken a drastic turn as the company’s upcoming Shareholder Meeting will feature perhaps the most crucial vote in its history: the approval of CEO Elon Musk’s new pay package.
For years, the issue of Tesla’s advertising and marketing strategy has been a major point of conversation for investors in fans. It seems to be split right down the middle, with half wanting Tesla to set aside some money for advertising. The other half, just the opposite.
Tesla has been transparent that the money it would spend on advertising, marketing, and public relations is better set aside for the development of future products.
However, it has recently adopted a different tone in advertising, pushing some commercials on social media platforms like X and Instagram.
For the first time, an ad was seen on streaming services like Paramount+, but it wasn’t promoting Tesla’s products directly. Instead, it was more of a message for shareholders to vote on Musk’s pay package, something Tesla feels is a necessity:
Well this is a first. Tesla is running paid ads on Paramount+ encouraging people to vote their $TSLA shares ahead of the annual shareholder meeting on November 6th.
“Tesla is on the precipice of its next wave of transformations growth, and we need your support; We urge you to… pic.twitter.com/FTo5eFQJRZ
— Sawyer Merritt (@SawyerMerritt) October 14, 2025
“The future of Tesla is in your hands,” the ad reads at the end. It seems as if Tesla is taking whatever steps it needs to accomplish the task of getting Musk a new pay package and retaining him as its CEO.
On September 5, Tesla officially outlined its plans for a CEO Performance Award for Musk. It would require him to lift Tesla’s market capitalization to about $8.5 trillion, up from the $1.36 trillion it sits at today.
Elon Musk’s new pay plan ties trillionaire status to Tesla’s $8.5 trillion valuation
It is obvious that Tesla is really hoping to get the pay package passed and is willing to shift some of its budget to encourage shareholders to vote.
However, there are some interesting perspectives on the move, and it’s sort of strange to see Tesla not advertising its vehicles or products, but only its pay package that would get its CEO paid.
Some of those who saw the ad are questioning the strategy:
Definitely a sign of desperation for $TSLA. They wouldn’t need to beg for votes if the BOD just did their job and held Elon accountable for his actions in the past. His blatant disregard for Tesla’s brand and the actions he takes in the public eye are exactly why I voted NO.
— squawksquare (@squawksquare) October 14, 2025
Doesn’t this taste wrong to anyone else?
No ads for the business? Only for the CEOs pay package?
— Schrodinger’s Wealth (@BosCybertruck) October 14, 2025
Tesla is validating Robotaxi in a new area, and as the company has continued to gain some additional permissions to begin testing in new states, it seems its Full Self-Driving-based ride-hailing project is moving toward a larger footprint.
Two Robotaxi units with LiDAR validation equipment were spotted in Gilbert, Arizona, recently, showing that Tesla is aiming to launch its ride-hailing service in the state soon:
TESLA ROBOTAXI SPOTTED VALIDATING IN GILBERT, AZ! :0 pic.twitter.com/kqtQEBwl8Y
— Greggertruck (@greggertruck) October 11, 2025
Another unit was spotted in Tempe, Arizona:
Spotted this one and another one behind it in Tempe, AZ. I also saw a pair driving from Mesa to Tempe. Looks like they’re validating the entire east valley. I haven’t seen any in the west valley yet. pic.twitter.com/gFWTHhmBLT
— TechCat (@elviswjr) October 12, 2025
These types of validation vehicles have been spotted in several areas ahead of their launch as a public ride-hailing service for passengers. Tesla first launched Robotaxi in Austin, Texas, back in late June, and since then, it has expanded to the Bay Area of California.
However, Tesla has continued to attempt to expand Robotaxi to other areas as well, including Nevada and Arizona. It has also been working toward approvals in other states based on job postings, as Tesla is hiring for Autopilot Vehicle Operators in New York and Florida, as well.
The expansion of the Robotaxi ride-hailing service has been an effort that Tesla has been spending a lot of time on over the past few months. CEO Elon Musk said the expansion aims to bring Robotaxi to at least half of the U.S. population by the end of the year, but there is still plenty of work to be done.
Tesla Robotaxi heads to a new major Texas city for the first time
Tesla did make its Robotaxi app public in recent months, allowing more members of the public to experience the suite for themselves, as long as they could get to Austin or the Bay Area.
In the coming months, it seems more apparent that Tesla will take a broader focus on expanding Robotaxi, especially with the fact that these validation vehicles are being spotted throughout different parts of the United States.
Tesla eyes two new states for Robotaxi
Tesla launched an ad for Elon Musk’s pay package on Paramount+
Tesla Robotaxi testing in Arizona is ramping up quickly
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