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SpaceX to in-house mass production of Starlink internet satellite hardware
SpaceX is rapidly expanding it’s Starlink internet constellation development to prepare for full-scale production and aims to bring nearly every major piece of satellite and network hardware and software in-house, according to details revealed in dozens of job postings.
While not explicit, this appears to indicate a significant convergence of multiple possible paths to an operational constellation. Put simply, SpaceX now intends to build every single major component of its 4400+ satellite network in-house. It’s almost easier to list the things SpaceX does not mean to build themselves, but here’s a stab at the components to be built in-house: satellite structures, laser (optical) data interlinks, on-orbit phased array antennae, digital signal processor (DSPs) software and hardware to aim those antennae, solar arrays, battery systems, power electronics, custom integrated circuitry and systems on a chip (SoCs), user terminals and larger gateways, network operations, production automation, autonomous satellite constellation management, and much, much more.
Remote camera has been retrieved, wet with morning dew…and WITH images! Awesome launch by SpaceX. @teslarati #SpaceX #Paz #Starlink pic.twitter.com/tDTXxZErN4
— Pauline Acalin (@w00ki33) February 22, 2018
While entire articles could be spent describing the complexities of every single one of the above subsystems, the point is that SpaceX appears to have gone all-in on building its own satellite constellation, departing from stances in the past that appeared to leave room for subcontracting and outsourcing the production of major parts of the network, particularly with respect to ground terminals and gateways. Postings for ground station and user terminal engineers describe a goal of medium to high volume in-house production of the critical network and customer-facing hardware, and an entry into the production of high volume consumer technology would be a truly eclectic and unprecedented step for a company theoretically focused on launch vehicle development and production and sustainable Mars colonization.
If anything, they speak to the truly vertical nature of SpaceX. Many technology development production companies would simply accede and accept the best subcontractor/outsourcing bid when entering into new territory truly outside of their internal expertise. SpaceX engineers and managers, however, seem to have concluded that the vast majority of hardware and corporate expertise they could co-opt is just not satisfactory for the purpose of building a paradigm-shifting satellite constellation; or as CEO Elon Musk noted in 2015, to “revolutionize the satellite side of things, just as we’ve done with the rocket side of things.”
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- SpaceX’s first Starlink prototypes launched in late February aboard a flight-proven Falcon 9 booster. (Pauline Acalin)
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- SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural Feb. 2018 launch, showing off a utilitarian design. (SpaceX)
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- Falcon 9 roars into the dark California sky with PAZ and Starlink. (Pauline Acalin)
This new (and, in retrospect, unsurprising) trailblazing attitude also helps to explain the marginal delay to Musk’s original 2015 schedule, which estimated initial constellation operations (i.e. a few hundred satellites launched) would begin around 2020. Approximately a year later, SpaceX had built rough prototypes in the form of the original Microsat 1A and 1B twins. This initial foray into independent, long-term communications smallsats was shuttered fairly quickly, and neither of the demo satellites were launched. Instead, SpaceX dove back into prototype design and development, culminating roughly two years later with the March 2018 launch of two dramatically improved prototypes, known as Tintin A and B (or Microsats 2A and 2B in FCC licenses).
It seems probable that the source of this delay lay in an internal decision to dramatically reconfigure the internet constellation for far more in-house development, whereas the original Microsats were likely pieced together from a range of components derived from SpaceX’s Cargo Dragon program or more simply from commercial off-the-shelf (COTS) offerings. Instead, SpaceX’s Starlink development offices in Redmond, Washington and throughout California are staffed with as many as 400 to 500 employees dedicated in large part to the nascent program, similar (if not larger) in scale to OneWeb, the only noteworthy satellite internet competitor at present.
If SpaceX’s decision to push back Starlink’s operational debut by a few years in order to bring in-house almost every single critical subcomponent of Starlink pays off, the company could begin launching finalized satellites en masse as early as late 2019/early 2020, with a goal of offering limited service by 2021 per comments made by CEO Elon Musk. Starlink is likely being brought almost entirely in-house because Musk or other high-level executives and engineers see major room for improvement, improvements that could lower the cost of and improve the performance of lightweight communications satellites by an order of magnitude.
A flight-proven Falcon 9 prepares for launch in May 2018. SpaceX will likely launch at least one more pair of Starlink demo satellites from the West coast later this year (Pauline Acalin)
It will likely take a bit longer than initially expected, but SpaceX may yet still pave their path to Mars colonization with profits derived from a wildly successful and disruptive entrance into the broadband market.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
