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SpaceX’s first “next-gen” Starlink satellites are suspiciously familiar
In a strange twist, SpaceX says that its next Starlink mission will launch 54 satellites into low Earth orbit (LEO), implying that they’re roughly the same size as the V1.5 satellites it’s already launching – not the larger V2 or V2 Mini satellites discussed in recent FCC filings.
However, the data SpaceX provided also shows that those 54 satellites are headed to an orbit that only matches the company’s next-generation Starlink Gen2 (V2) constellation. While SpaceX quietly indicated that a V1.5-sized satellite was an option for early Gen2 launches in a supplemental October 2022 filing [PDF] with the FCC, it’s still unclear why SpaceX would prioritize launching V1.5-sized V2 satellites while its V1 constellation remains unfinished.
Adding to the confusion, in November 2021, CEO Elon Musk strongly implied that the inefficiencies of smaller Starlink V1.x satellites were so significant that they could risk bankrupting SpaceX if the company couldn’t start launching larger V2 satellites on its next-generation Starship rocket by the end of 2022. What, then, is the purpose of SpaceX’s imminent “Starlink G5-1” launch?
The update that's rolling out to the fleet makes full use of the front and rear steering travel to minimize turning circle. In this case a reduction of 1.6 feet just over the air— Wes (@wmorrill3) April 16, 2024
The name alone is confusing. Using the same shorthand as past Starlink V1 launches, “G5-1” refers to the first launch of “Group 5” of a constellation. “Group” here is synonymous with “shell,” which describes a set of satellites that share the same orbital inclination (the angle at which the orbit crosses the equator) and a similar orbital altitude. Of SpaceX’s three approved constellations, only one has five shells, and that shell can only exist at 97.6 degrees, not 43 degrees. SpaceX’s Gen2 constellation technically has nine planned shells, but the FCC has only partially approved three of those shells, one of which is at 43 degrees.
Ignoring the obtuse name, one possibility is that aspects of Starlink V2 satellite upgrades are not explicitly tied to the much larger size of those satellites and can be applied to SpaceX’s first-generation Starlink constellation without requiring a modified FCC license. If SpaceX wanted to add larger satellites to its V1 constellation or change the frequency bands they use, it would almost certainly have to seek a modified license from the FCC, which could take months.
There is no evidence SpaceX has done so, and any attempt would produce public documentation. The 43-degree inclination SpaceX’s mysterious “Starlink G5-1” launch is targeting also rules out any involvement in its V1 constellation, which only has approval for satellites between 53 and 97.6 degrees.
Aside from the unlikely possibility that details about the Starlink 5-1 mission are somehow incorrect or an artifact of a messy launch licensing process, there is at least one other unlikely explanation. In October 2018, the FCC granted SpaceX permission to launch a very low earth orbit (VLEO) constellation of 7518 Starlink satellites with dimensions similar to satellites that make up the 4408-satellite constellation the company is currently launching. More than four years later, SpaceX has yet to begin launching its approved VLEO constellation.
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In November 2022, SpaceX told the FCC it intended to combine its Starlink VLEO and Starlink Gen2 constellations by adding V-band antennas to some of the almost 33,000 Gen2 satellites it hoped to launch – a move that would reduce the total number of Starlink satellites SpaceX needs to launch. Around the turn of the month, the FCC partially granted SpaceX’s Starlink Gen2 license, adding unprecedentedly strict requirements and only permitting the launch of 7500 of 33,000 planned Gen2 satellites to a limited set of inclinations (33, 43, and 53 degrees).
Perhaps, then, the uncertainty created by the FCC’s strange partial Gen2 grant made SpaceX change its mind about a dedicated Starlink VLEO constellation. However, without a license modification, SpaceX’s VLEO constellation is stuck with the same smaller (and potentially bankruptcy-inducing) satellites that its CEO believes make the first Starlink V1 constellation unsustainable. SpaceX also has less than two years until its VLEO constellation crosses its first deployment milestone, at which point the company will need to have launched half of it (3759 satellites) to avoid penalties from the FCC – up to and including the revocation of its license.
Despite the numerous reasons it wouldn’t make sense for Starlink 5-1 to be SpaceX’s first Starlink VLEO launch, almost 2500 of SpaceX’s approved VLEO satellites were intended to operate in a 336-kilometer (~209 mi) orbit inclined by 42 degrees – oddly similar to the 338-kilometer (~210 mi), 43-degree orbit SpaceX appears to be targeting with Starlink 5-1.
A surprise VLEO launch is a very unlikely explanation, but it’s only marginally stranger than the alternatives: that Starlink 5-1 is a V1-sized V2 launch with no prior mention or warning, a V1 launch to an orbit that would explicitly violate SpaceX’s Starlink V1 FCC license, or a paperwork error that has propagated so far that SpaceX distributed incorrect orbit information (which could threaten other satellites and rockets) less than two days before liftoff.
Thankfully, there is one last explanation – raised after this article was published – that appears to be much more likely. In response to a tweet summarizing these claims, astrophysicist Jonathan McDowell noted that SpaceX had, in fact, mentioned a third smaller Starlink V2 satellite variant in an October 2022 FCC filing that fell mostly under the radar. In that filing, SpaceX told that FCC it was developing three variants, not two. The smallest variant was said to weigh 303 kilograms and featured dimensions seemingly identical to SpaceX’s existing V1.5 satellites, which are estimated to weigh around 307 kilograms. SpaceX also stated that initial Falcon 9 launches will carry “approximately twenty to sixty satellites,” again confirming that V2 satellites could be about the same size and shape as V1.5 satellites.
SpaceX’s decision to develop a V1.5-sized version of V2 satellites makes little sense in the context of Musk’s implicit claims that problems inherent to its smaller V1 satellites threaten the company’s solvency. It’s clearer than ever that the SpaceX CEO may have been stretching the truth of the matter to craft an existential threat that might encourage employees to work longer hours. Still, developing and launching a V1.5-sized V2 satellite variant and beginning to launch those satellites while SpaceX’s Starlink Gen1 is more than 25% incomplete is confusing at best.
Regardless of what it’s carrying or why, a SpaceX Falcon 9 rocket is scheduled to launch Starlink 5-1 out of Florida’s Cape Canaveral Space Force Station (CCSFS) no earlier than 4:40 am EST (09:40 UTC) on Wednesday, December 28th.
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Venture capitalist Chamath Palihapitiya has cautioned investors shorting SpaceX shares, drawing a direct parallel to the intense short-selling pressure Tesla faced in its early public years.
Responding to reports of elevated short interest in the newly public rocket, satellite, and AI company, Palihapitiya noted that similar dynamics played out with Tesla, where aggressive short sellers ultimately “went broke.”
SpaceX (NASDAQ: SPCX) went public on June 12, 2026, in the largest IPO on record, pricing at $135 per share. Shares quickly surged to an all-time high of $225.64 just days later, briefly implying a valuation exceeding $2 trillion. The stock has since retreated sharply amid valuation concerns, lockup expiration fears, and broader market dynamics.
By early August, it traded near $108–$125, representing a roughly 50 percent decline from the peak and bringing the market capitalization closer to the $1.5–1.7 trillion range. On August 4, shares closed up more than 9 percent at $125.33 ahead of earnings before facing pressure in after-hours and premarket trading.
Short interest has climbed dramatically. According to S3 Partners data widely cited in market reports, short positions reached approximately 219.3 million shares by late July, about 34 percent of the limited public float of roughly 640 million shares, and represented a notional value of around $24.6 billion.
Utilization of shares available to borrow hit 95 percent, with borrow fees rising. This level of shorting exceeded the dollar value of short bets against Tesla at the time and built rapidly ahead of two catalysts: the company’s first post-IPO earnings and an August 6 lockup expiration that could free up to 911.5 million additional shares.
CEO Elon Musk has issued warnings of his own. In mid-July, as short interest approached one-third of the float, he posted that “the survival probability of firms who maintain a significant short position in SpaceX over time is very low,” reiterating his view that the company could ultimately be worth more than Earth if it achieves its goals.
On August 4, just before earnings, Musk responded to the latest short-interest data by saying, “I try to warn them, but they just double down.”
SpaceX delivered its first quarterly results as a public company after the close on August 4. Second-quarter revenue rose 92 percent year-over-year to $7.8 billion, beating consensus estimates near $6.8–6.9 billion.
The net loss narrowed to $541 million, or 9 cents per share, better than the roughly 23–24 cent loss expected. Starlink/connectivity contributed about $4.3 billion (up 66 percent), while the AI business generated $2.6 billion (up roughly 250 percent). Capital expenditures were heavy at $18.4 billion, largely tied to AI infrastructure. Management projected a $100 billion annualized revenue run rate by year-end 2026 and outlined a path toward $1 trillion in annual revenue by 2030.
The combination of Chamath’s historical reminder, Musk’s repeated alerts, and the company’s ambitious growth targets underscores the high-stakes debate surrounding SPCX. Short sellers are positioned for near-term supply pressure from the lockup, while long-term bulls point to Starlink scale, Starship progress, and AI compute expansion as reasons the bears may ultimately face the same fate as many early Tesla skeptics.
Investor's Corner
SpaceX and Nvidia team up on Musk’s orbital AI bet
SpaceX revealed a new Nvidia satellite partnership, then Musk pledged an exclusive Nvidia hardware commitment.
SpaceX and Nvidia are now working together on the hardware that will power Musk’s orbital data center ambitions. SpaceX announced on X on Tuesday that it is partnering with Nvidia to design the compute payload for Starmind AI1, the first satellite in a planned constellation built to run AI workloads directly in orbit. Each Starmind satellite will carry Nvidia’s Rubin GPUs and Vera CPUs, according to the post, which included renderings of the payload design.
The announcement landed hours before SpaceX’s first earnings call as a public company, where Musk went further, saying the company has committed to building its AI infrastructure exclusively on Nvidia hardware. “We think the Vera Rubin architecture is the best architecture. We think it’s the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia,” Musk told investors on the call,. “So we’re exclusive to Nvidia.”
Musk said SpaceX plans to deploy Nvidia’s Vera Rubin NVL72 rackscale system, codenamed Kyber, both on the ground and in space. He set a target of 2 gigawatts of compute capacity online by the end of this year, scaling to roughly 10 gigawatts by the end of 2027.
SpaceX’s newest Starmind will make earth data centers obsolete
Starmind has been in development since Musk confirmed the name in June, following an xAI trademark filing that tipped off the project before SpaceX made it official. The idea is massive in scope and instead of moving data down to ground based servers, satellites equipped with onboard processors and large solar arrays would compute AI workloads in orbit and beam results back to Earth. SpaceX has already filed with the FCC for a constellation of up to one million satellites to support the effort, citing constant solar power and the absence of zoning restrictions as advantages over terrestrial data centers.
The Nvidia exclusivity marks a shift in tone from just two weeks ago, when Musk was busy knocking down a report that SpaceX had ordered $52 billion worth of Nvidia GPUs through Foxconn, calling it fake news at the time. The dollar figure in that rumor may have been wrong, but the underlying direction seems correct. SpaceX’s AI division already leases Colossus compute capacity to Anthropic and Google, and Tuesday’s earnings report showed AI revenue climbing sharply as those deals ramp up.
Nvidia shares rose roughly 3% in Tuesday trading on the news, while SpaceX stock climbed nearly 9% during the day before giving back gains after hours as investors digested the earnings report’s capital spending figures.
SpaceX (NASDAQ: SPCX) reported a beat in revenues and EBITDA in its first earnings call report while also minimizing losses as its business continues to gain momentum.
After its IPO in July, SpaceX saw some tough losses on Wall Street due to a major selloff after a delay in its 13th Starship test flight. The ship launched later that week and completed what was arguably the most successful IFT operation in the Starship program’s history.
Nevertheless, the company is continuing on and reported some encouraging financials while also promoting what appears to be a robust outlook moving forward in its Space, AI, and Connectivity divisions.
SpaceX to report first-ever earnings today: here’s what to expect
Earnings Results
- Revenues: $7.8 billion reported vs. $6.7 billion expected
- Adjusted EBITDA: $3.5 billion vs. $2 billion expected
- Net loss of $541 million, an improvement of $467 million from net loss of $1.0 billion
Additionally, CFO Bret Johnsen had these comments:
“2026 has been a momentous year so far, and the second quarter demonstrated the true power of SpaceX. Revenue growth accelerated across all our business segments and we delivered strong operating leverage, with significant margin expansion led by our new AI compute agreements. Our unparalleled leadership in launch, Starlink subscriber growth, new enterprise and government partnerships, and best-in-class AI infrastructure underscore our ability to drive meaningful scale and deliver attractive returns. As a newly public company, we are delighted to welcome our broad base of shareholders and bondholders. We ended the second quarter with $100 billion of cash, cash equivalents, and marketable securities, and $47.5 billion in backlog. This financial strength gives us substantial capacity to invest in Starship, Starlink Broadband and Mobile satellites, and our AI platform, while maintaining a disciplined long-term capital allocation framework.”
Space Business Highlights
SpaceX shared some of its biggest Space Business Highlights for Q2:
- Space revenues grew 55% sequentially and 29% year-over-year to $962 million, driven by a higher number of large customer launches and a favorable customer shift compared to the prior year
- Total costs and expenses for the Space segment were up by $389 million year-over-year, as we continued to accelerate R&D investments in our Starship program, which we believe will reduce the cost to orbit by 99% or more relative to the historical average, and unlock significant revenue potential across all business segments
- Leading launch provider for the world with 78 launches and 1,041 metric tons of mass to orbit deployed over the six months ended June 30, 2026, primarily allocated to Connectivity for the deployment of our Starlink constellation
- Starship V3 development continued to advance towards full and rapid reusability:
- Completed Starship V3’s first suborbital mission in May, Flight 12, which achieved a successful lift off from our new Starbase pad, a precision landing of Starship’s upper stage, and deployment of modified V2 Starlink satellites
- Subsequent to the second quarter, completed Starship Flight 13 in July, which achieved all flight objectives including deploying 20 production V3 satellites, demonstrating in-space relight of a Raptor engine, and executing the softest ever splashdown of Starship, providing critical views of an intact heatshield
SpaceX will report its earnings today at 4:30 P.M. EDT.
SpaceX shorts get warned by Musk ally, echoing Tesla’s early struggles
SpaceX and Nvidia team up on Musk’s orbital AI bet
