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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.”

https://www.instagram.com/p/BfgTyTzgYVm/

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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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 confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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tesla autopilot

Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

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The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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Tesla isn’t joking about building Optimus at an industrial scale: Here we go

Tesla’s Optimus factory in Texas targets 10 million robots yearly, with 5.2 million square feet under construction.

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Tesla’s Q1 2026 Update Letter, released today, confirms that first generation Optimus production lines are now well underway at its Fremont, California factory, with a pilot line targeting one million robots per year to start. Of bigger note is a shared aerial image of a large piece of land adjacent to Gigafactory Texas, that Tesla has prominently labeled “Optimus factory site preparation.”

Permit documents show Tesla is seeking to add over 5.2 million square feet of new building space to the Giga Texas North Campus by the end of 2026, at an estimated construction investment of $5 billion to $10 billion. The longer term production target for that facility is 10 million Optimus units per year. Giga Texas already sits on 2,500 acres with over 10 million square feet of existing factory floor, and the North Campus expansion is being built to support multiple projects, including the dedicated Optimus factory, the Terafab chip fabrication facility (a joint Tesla/SpaceX/xAI venture), a Cybercab test track, road infrastructure, and supporting facilities.

Credit: TESLA

Texas makes strategic sense beyond the existing infrastructure. The state’s tax structure, lower labor costs relative to California, and the proximity to Tesla’s AI training cluster Cortex 1 and 2, both located at Giga Texas and now totaling over 230,000 H100 equivalent GPUs, means the Optimus software stack and the factory producing the hardware will share the same campus. Tesla’s Q1 report also confirmed completion of the AI5 chip tape out in April, the inference processor designed specifically to power Optimus units in the field.

As Teslarati reported, the Texas facility is intended to house Optimus V4 production at full scale. Musk told the World Economic Forum in January that Tesla plans to sell Optimus to the public by end of 2027 at a price between $20,000 and $30,000, stating, “I think everyone on earth is going to have one and want one.” He has previously pegged long term demand for general purpose humanoid robots at over 20 billion units globally, citing both consumer and industrial use cases.

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Investor's Corner

Tesla (TSLA) Q1 2026 earnings results: beat on EPS and revenues

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Credit: Tesla

Tesla (NASDAQ: TSLA) reported its earnings for the first quarter of 2026 on Wednesday afternoon. Here’s what the company reported compared to what Wall Street analysts expected.

The earnings results come after Tesla reported a miss on vehicle deliveries for the first quarter, delivering 358,023 vehicles and building 408,386 cars during the three-month span.

As Tesla transitions more toward AI and sees itself as less of a car company, expectations for deliveries will begin to become less of a central point in the consensus of how the quarter is perceived.

Nevertheless, Tesla is leaning on its strong foundation as a car company to carry forward its AI ambitions. The first quarter is a good ground layer for the rest of the year.

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Tesla Q1 2026 Earnings Results

Tesla’s Earnings Results are as follows:

  • Non-GAAP EPS – $0.41 Reported vs. $0.36 Expected
  • Revenues – $22.387 billion vs. $22.35 billion Expected
  • Free Cash Flow – $1.444 billion
  • Profit – $4.72 billion

Tesla beat analyst expectations, so it will be interesting to see how the stock responds. IN the past, we’ve seen Tesla beat analyst expectations considerably, followed by a sharp drop in stock price.

On the same token, we’ve seen Tesla miss and the stock price go up the following trading session.

Tesla will hold its Q1 2026 Earnings Call in about 90 minutes at 5:30 p.m. on the East Coast. Remarks will be made by CEO Elon Musk and other executives, who will shed some light on the investor questions that we covered earlier this week.

You can stream it below. Additionally, we will be doing our Live Blog on X and Facebook.

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