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SpaceX kicks off $750M investment round as BFR and Starlink infrastructure needs grow

BFR's spaceship upper stage visualized performing a circumlunar mission. (SpaceX)

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Reuters reports that SpaceX has moved forward with an effort to raise capital through a leveraged loan and is now circulating a debt investment opportunity 50% greater than originally reported by Bloomberg.

With the maximum capital raise now capped at $750M with Bank of America in place of Goldman Sachs as the loan guarantor, SpaceX could rapidly find itself flush with funds that will be instrumental in the completion of major infrastructure expansion projects for its Starlink satellite constellation and next-gen BFR rocket and spaceship.

Particularly noteworthy is the fact that SpaceX – according to sources that spoke with Reuters –  is playing their financial cards very close to the chest, presumably suggesting that interested investors are being faced with extreme secrecy over the company’s finances, assuming they are being allowed much access at all. Given how gilded and relatively exciting SpaceX is, investors may be more than willing to shrug off the inherent high-risk, high-reward nature of commercial spaceflight and swallow an unusual burden of secrecy and opaque corporate insight.

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Assuming that SpaceX is able to successfully secure enough investors to raise the full $750M, this offering could mark a turning point in the way SpaceX approaches major capital expenditures, particularly at a point in time where the company is likely to imminently require massive amounts of cash to prevent major schedule delays for both Starlink and BFR. With more than two years and a full 35 successful launches separating SpaceX from their last catastrophic failure, the company’s financial outlook – at least from an external perspective – is healthier than its ever been, and the manner with which Falcon 9 has rapidly devoured a majority of the global commercial launch industry is extremely promising.

 

Further, SpaceX hopes to lower the average cost of rocket launches by at least one or two magnitudes with the introduction and optimization of the next-gen BFR rocket, while its prospective Starlink satellite constellation has the potential to disrupt an unbelievably vast and stagnant global communications market. In order to even begin to make either or both aspirations real, SpaceX will need to construct wholly new production, test, and launch facilities capable of manufacturing an unprecedented number of satellites (between ~4400 and ~12000) and supporting what would be the largest and most advanced commercial rocket ever built.

Altogether, these many towering challenges will demand major investments in infrastructure with no real guarantee of returns. If the market will bear it (and it seems to be more than willing), leveraged loans – essentially debt equity backed by large banks or institutions – is one of the best possible ways to raise large amounts of money for risky prospects, particularly for a company as successful and glamorous as SpaceX. With any luck, investors will be luxuriously rewarded for going out on a relative limb.


For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet, check out our brand new LaunchPad and LandingZone newsletters!

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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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Tesla takes huge step with Cybercab in new spotting

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Credit: Met God in Wilderness | YouTube

Tesla has taken a huge step forward with its Cybercab project, as the vehicle has been spotted on the Fremont Test Track for the first time.

Typically, when cars are spotted on the Fremont Test Track, it means Tesla has begun advancing the development of that specific project. With Cybercab production slated for 2026, it seems Tesla is ready to get things moving.

The Cybercab was unveiled one year ago tomorrow, at the “We, Robot” event in Los Angeles.

Tesla Robotaxi Cybercab: Seats, price, special features, release date, and more

Tesla has been hoping to get Cybercab production started in early 2026. With a few months until then, the program has taken some leaps, including the recent start of crash testing of the vehicle at the Fremont Factory in Northern California.

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Some of these units have made their way to Gigafactory Texas at Tesla’s crash testing facility:

Now, it has taken another step as Tesla has officially started testing the vehicle at the Fremont Test Track:

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Here’s when vehicles in Tesla’s lineup were first spotted on the Fremont Test Track and then launched:

Vehicle
First Spotted on Fremont Test Track
Launch Date (Production Start/First Deliveries)
Model Y
December 12, 2019
January 2020
Tesla Semi
March 8, 2021
December 1, 2022 (Limited to pilot program participants)
Cybertruck
December 10, 2021
November 2023
Cybercab
October 9, 2025
Early 2026

Timeframes for when Tesla vehicles hit the Fremont Test Track and when their production and deliveries begin certainly vary.

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However, the Cybercab being spotted marks a significant step forward for Tesla, as it indicates the company is nearing a major milestone in production, whether for deliveries or on-road testing.

It does seem as if Tesla could employ the Cybercab for its Robotaxi program in Austin, Texas, and Northern California.

With more markets expected to launch Robotaxi rides soon, it could be a formidable challenge for the new vehicle, especially if Tesla can initiate rides without a Safety Monitor.

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Chevy answers Tesla’s new ‘Standard’ offerings with an actually affordable EV

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Credit: KilowattStation | X

Chevy answered Tesla’s new Standard Model 3 and Model Y offerings with its second-generation Bolt EV, a car that actually appeals to those who were looking for affordability.

Earlier this week, Tesla unveiled the Model 3 and Model Y Standard, two stripped-down versions of the cars of the same name it already offers. The Long Range versions are now labeled as “Premium,” while the Performance configurations stand alone.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

However, many people were sort of upset with what Tesla came to market with. For well over a year, it has been transparent that it was planning to develop affordable models, and this year, it was forced to take action to counter the loss of the $7,500 EV tax credit.

The Model 3 Standard starts at $36,990, while the Model Y Standard comes in at $39,990. While these are cheaper than the company’s Premium offerings, many fans said that Tesla missed the mark with the pricing, as these numbers are not necessarily “affordable.”

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At the very least, they will likely miss the mark in helping Tesla regain annual growth rates for its deliveries. Tesla will likely rely on its “unboxed process,” which will be used to manufacture the Cybercab and potentially other affordable models in the future. These will be priced at below $30,000.

Other carmakers are making their moves and were able to undercut Tesla’s new Standard offerings, Chevrolet being one of them.

This week, the company launched its second-gen Bolt EV, which starts at just $28,995.

Here are the full specs:

  • 65 kWh LFP battery
  • 255 miles of range (EPA estimated)
  • Native NACS port for Tesla Supercharger accessibility without an adapter
  • Up to 150 kW charging speed
  • Bidirectional power of 9.6 kW
  • Front-Wheel-Drive
  • 10-80% charging in just 26 minutes
  • No Apple CarPlay or Android Auto
  • SuperCruise capable
  • 11.3″ touchscreen, 11″ digital gauge cluster
  • 16 cubic feet of cargo capacity
  • Other Trims
    • RS – $32,000
    • Base LT – $28,995
  • Deliveries begin in early 2026

Let’s be frank: Tesla fans are unlikely to bat an eye at other OEM offerings. However, first-time EV buyers might be looking for something more price accessible, so vehicles under $30,000 are where they will look first, at least for most people.

If money isn’t an option, people will consider spending a minimum of $37,000 on a new vehicle, especially an EV, as a first-time owner.

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The Bolt EV could be something that does well, especially considering its one of only a handful of EVs that are priced at around $30,000 brand new in the U.S.

The others are:

  • Nissan Leaf S ($28,140)
  • Mini Cooper SE ($30,900)
  • Fiat 500e ($32,500)

While these cars are priced at around $30,000 and are affordable, they each offer minimal range ratings. The Nissan Leaf S and Fiat 500e have just 149 miles, while the Mini Cooper SE has 114 miles.

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Tesla Model S makes TIME’s list of Best Inventions

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(Credit: Tesla)

Tesla’s flagship sedan, the Model S, has officially been named one of TIME Magazine’s Best Inventions of the 2000s. It joins its sibling, the Model 3, which made the list in 2017.

The Model S is among the most crucial developments in the automotive industry in the last century.

Just as the Ford Model T made its mark on passenger transportation, becoming the first combustion engine vehicle to be successfully developed and marketed at a time when horse and buggy were the preferred mode of transportation, the Model S revolutionized things a step further.

Although it was not the first EV to be developed, the Tesla Model S was the EV that put EVs on the map. In 2012, TIME recognized the Model S as a piece of technology that could truly transform the car industry.

The publication wrote:

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“This electric four-door sedan has the lines of a Jaguar, the ability to zip for 265 miles (426 km) on one charge—that’s the equivalent of 89 m.p.g. (2.6 L/100 km)—and touchscreen controls for everything from GPS navigation to adjusting the suspension.”

Looking back, TIME was right on. The Tesla Model S was truly a marvel for its time, and it, along with the OG 2008 Roadster, can be seen as the first two EVs to push electrification to the mainstream.

As TIME described this year, the Model S “proved to be a game-changing experience for electric vehicles,” and it ended up truly catalyzing things for not only the industry, but Tesla as well.

The Model S acted as a fundraiser of sorts for future vehicles, just as the Model X did. They paved the way for the Model 3 and Model Y to be developed and offered by Tesla at a price point that was more acceptable and accessible to the masses.

The Current State of the Tesla Model S

The Model S contributes to a very small percentage of Tesla sales. The company groups the Model S with the Model X and Cybertruck in its quarterly releases.

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Last year, that grouping sold 85,133 total units, a small percentage of the 1.789 million cars it delivered to customers in 2024.

Things looked to be changing for the Model S and the Model X this year, as Tesla teased some improvements to the two cars with a refresh. However, it was very underwhelming and only included very minor changes.

Lucid CEO shades Tesla Model S: “Nothing has changed in 12 years now”

It appeared as if Tesla was planning to sunset the two cars, and while it has not taken that stance yet, it seems more likely that the company will begin taking any potential options to heart.

CEO Elon Musk said a few years ago that the two cars were only produced due to “sentimental reasons.”

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