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SpaceX recovers fairing intact for the first time, Starlink communicating back to Earth

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With the launch of PAZ and two of their own Starlink demo satellites, SpaceX has completed its fourth successful launch of 2018, and continued an aggressive series of reusability-focused flight-tests.

Amazingly, the company managed to successfully recover a fairing intact for the first time ever, an absolutely crucial step towards ramping the Falcon family’s launch cadence and reusability. According to CEO Elon Musk, SpaceX’s fairing recovery vessel Mr. Steven missed the fairing by a few hundred meters, meaning that the fairing gently landed in the Pacific Ocean, rather than Mr. Steven’s now-famous fairing recovery net. This is quite possibly the first time in aerospace history that an orbital rocket’s payload fairing has been recovered intact, and the fairing in question looks very much intact.

As mentioned by Musk, that massive piece of hardware had to survive reentry into Earth’s atmosphere at no less than Mach 8, considerably more than two times faster than the famous SR-71 Blackbird spy plane. While the fairing’s parafoil appears to have sunk after being quickly detached, careful observers will note three vertical bars at its three corners, almost certainly the points where that parafoil attaches to them and allows it to gently float down to the ocean surface.  While not nearly as consequential as SpaceX’s growing expertise with Falcon booster recovery and reuse, each fairing – made largely of carbon fiber composites – takes a huge amount of time and effort to complete, and cost upwards of $3 million each ($6m for both halves). In this sense, SpaceX has managed to recover a pallet of cash, as Musk humorously likened the effort fairing reuse to in 2017.

Given just how good the fairing’s condition appears to be, as well as the calm sea states, it’s very likely that SpaceX will try to pick up the landed fairing with a crane, although that would require a different vessel – Mr. Steven has no crane! Teslarati’s Pauline Acalin will undoubtedly be checking out the Port of San Pedro once Mr. Steven has returned to shore, in hopes of capturing the first-ever photos of a recovered orbital rocket fairing.

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Falcon 9 roars into the dark California sky with PAZ and Starlink. (Pauline Acalin)

Starlink hopes tempered despite apparent success

While only mentioned a few times during the webcast, the Falcon 9 that launched earlier today was also carrying additional co-passengers – two SpaceX demonstration satellites, in this case. Confirmed to have successfully deployed and begun communicating with SpaceX ground control, this is another huge accomplishment for SpaceX and marks their first-ever steps into dedicated satellite manufacturing and operation. Despite the significance of this event, SpaceX was keen to lower expectations for the satellite internet network, named Starlink. The following statement was provided during the webcast:

“Even if these satellites work as planned, we still have considerable technical work ahead of us to design and deploy a low Earth orbit satellite constellation. If successful, [this system] would provide people in low to moderate population densities around the world with affordable, high-speed internet access, including many that have never had internet access before.”

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For all intents and purposes, this appears to be a significant departure from previous statements given about Starlink by the rocket company. The explicit mention of “low and moderate” population densities being the only focus of service contrasts heavily with a general sense that Starlink was intended from the outset to provide universal internet around the globe to anyone who could afford the service. This certainly serves as a confirmation that there are major technological hurdles that will need to be overcome for Starlink to become the universal internet many have come to hope for from SpaceX – it would appear that it will be quite difficult to serve high-density populations with SpaceX’s current choice of technologies for their constellation.

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Still, the demand is undeniably there. Even readers of Teslarati expressed an immediate desire to ditch their cable companies and ISPs, both in the US and abroad. If SpaceX can make it happen, they will have hordes of eager ISP-hating internet users desperate for any alternatives, and your author is proudly among them. The badly served aside, it sounds like SpaceX may be pivoting towards Starlink as a method of connecting the underserved – mainly those in rural or undeveloped areas. Even in the US, this is a major problem for those that do not live near large cities, and US ISPs are exceptionally anti-consumer in these situations – often times charging obscene costs for cable installation or outright refusing to provide coverage. Starlink could be a boon for those individuals in the US and elsewhere, especially where a simple lack of infrastructure is the cause. Much of Africa suffers from this, although mobile networks have become a backbone for a relatively unique pattern of mobile phone usage.

Here’s to hoping that SpaceX manages to once again rise to an exceptional technological challenge. As with all R&D efforts, the company’s satellite effort would be helped immensely with additional funds, and thankfully Falcon 9 Block 5 is very nearly ready to fly its first missions. This highly reusable iteration of the rocket could enable SpaceX to fly dozens of missions with a single Falcon 9 booster, and would thus enable unprecedented profit margins for a launch company, at least in the interim. Eventually, SpaceX is bound to bring down its prices for the customer, but the first need to recoup their reusability and Falcon Heavy investments, while also ensuring a sound business plan to support the development of their BFR and BFS vehicles that may one day enable the colonization of space. Starlink may be another beneficiary of those profits, and could itself one day act as a source of reliable funding for SpaceX’s interplanetary endeavors.

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Tom CrossTwitter

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Pauline Acalin  Twitter

Eric Ralph Twitter

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 VP explains latest updates in trade secret theft case

Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

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tesla 4680
Credit: Tesla Inc.

Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.

Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.

Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”

Tesla is suing a former supplier for trade secret theft

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The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.

Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.

Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:

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Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”

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Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.

What are Tesla’s Current Legal Options

The case isn’t over—it’s moving to the damages phase. Tesla can:

  • Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
  • Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
  • Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
  • Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.

Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.

This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.

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Tesla Cybercab includes this small but significant feature

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

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Credit: Tesla

Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.

Tesla Cybercab display highlights interior wizardry in the small two-seater

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Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:

This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.

It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.

The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.

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Elon Musk

Tesla and xAI team up on massive new project

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

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“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

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From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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