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SpaceX preps second $500M fundraiser as Starlink & Starship make progress

Starship and Starlink are in need of major funding and investors appear to be happy to comply. (SpaceX)

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According to regulatory documents seen by Prime Unicorn Index, SpaceX finished a $500M funding round begun in December 2018 and kicked off a second campaign seeking an additional $500M earlier this month.

Altogether, SpaceX appears to be on track to secure $1 billion in fresh capital in the last six months alone, a trend that that may well continue as the company pushes forth into new and capital-intensive phases of Starlink and Starship development. In Boca Chica, a flood of SpaceX engineers and technicians have descended on the area to build the first full-scale steel prototypes of Starship and the major facilities needed to support the vehicles, all from scratch. Across the West Coast of the US, a separate SpaceX team has simultaneously transitioned from prototyping and developing satellites to building a factory to mass-produce them and may be less than six weeks away from launching the first operational batch of Starlink spacecraft.

Giant rockets, giant funding

Both massive, perilous, and largely unprecedented ventures in their own right, Starship (formerly BFR) and Starlink also happen to be extremely capital-intensive, a more or less fundamental consequence of the stages of their development and expansion. Both spent many years in pure research and development phases, tinkering and experimenting with different ideas and technologies on the ground in an effort to conceptualize what exactly their final forms ought to be. This aspect of the BFR program has been extremely visible over the last three years as SpaceX and CEO Elon Musk’s goals underwent continuous semi-annual changes, often intentionally broadcasted to the public in livestreamed events.

After appearing to finally settle on the quasi-final form of BFR (renamed to Starship/Super Heavy), SpaceX has actually begun to build and test the first full-scale, integrated prototype of the spacecraft (Starhopper) and is simultaneously building what aims to be the first orbital Starship prototype. At the same time, its propulsion system of choice – known as Raptor – has entered into serial production back at SpaceX’s Hawthorne factory, while also supporting the first Starhopper hop test in early April and preparing to continue separate ground testing.

SpaceX’s first (left) and second (right) Starship prototypes, seen on April 8th. (NASASpaceflight – bocachicagal)

Thousands of satellites, billions of dollars

In February 2018, SpaceX successfully launched its first Starlink satellites, two prototypes meant to test a bevy of technologies the company was attempting to build (or at least utilize) for the first time. Despite hints and reports of some problems on orbit, SpaceX firmly holds that both satellites were extremely successful in their task of proving out new technologies like electric thrusters and phased-array antennas and are still safely operating today. Just four months after those prototypes launched, CEO Elon Musk took the extraordinary step of flying to Redmond, Washington to personally challenge a number of executives he believed were operating far too sluggishly. According to secondhand reports, many of them refused to expedite the program as Musk wanted them to, resulting in their immediate firings. The challenge that triggered the organizational upheaval: launch the first operational batch of Starlink satellites before the end of June 2019, twelve months away at the time.

Five months after Musk’s challenge, SpaceX submitted a request to the FCC to modify its original Starlink constellation license, halving the orbit of the first thousand or so satellites to 550 km (340 mi) and significantly simplifying the technology on the first several dozen to be launched. As a result of the strategic changes made, SpaceX is already planning to launch its first group of Starlink satellites as early as mid-May, with perhaps one or several additional launches on the books for 2019. To an extent, the first 75 Starlink satellites and their six ground stations will be a nearly full-fidelity second prototype. Instead of a minimalist development platform like Tintin A and B, the first 75 satellites should offer opportunities to actually test the operations of a large constellation of spacecraft while also demonstrating something close to the internet connectivity the full constellation is meant to offer.

One of the first two prototype Starlink satellites deploys from Falcon 9’s upper stage, February 2018. (SpaceX)

Development to production

That SpaceX is attempting to raise huge amounts of capital should come as no surprise. For almost any commercial venture on Earth that is attempting to introduce a real product from nothing, the process of going from concept, design, and testing to building a final product at scale is both extraordinarily difficult and extremely expensive. Tesla famously went through “manufacturing hell” to go from Model 3 prototypes to a mass-producible finished product, while countless other ventures don’t even make it that far (i.e. vaporware). By far the most challenging aspect of this transition is moving from a phase focused predominately on development to one focused predominately on production.

Due to an extremely unorthodox approach to building the first steel Starship and Super Heavy prototypes, quite literally choosing to do so outside and without shelter, the BFR program is probably less extreme for the time being. However, the transformation needed for Starlink to progress is intense, requiring the satellite team to essentially build a factory from scratch and begin mass-producing high-performance satellites as quickly as possible. The 75-satellite buffer should ease the pain a bit and offer a sort of trial run as SpaceX makes that major transition, but the fact remains that an unprecedented number (thousands) of satellites will need to be built and launched at an equally unprecedented pace and cost-per-unit.

SpaceX already has a giant factory in Hawthorne, CA, but it remains packed to the brim with Falcon and Dragon production operations. (SpaceX)

The $500M raised since December 2018 will likely be a major help for SpaceX’s often-shoestrung development programs. The decision to open a second $500M funding round just months after the first also bodes well for demand, indicating that it shouldn’t be long before this newest round is itself completed. Meanwhile, Starlink’s first-launch milestone is rapidly approaching, while SpaceX’s South Texas team continue to make progress on the first orbital-class Starship prototype. Onward and upwards

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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 details plan for increased Model Y pricing stability in Australia

As Chinese automakers increasingly deploy low-priced EVs in the Australian market, one Tesla executive explains one way the company plans to stay competitive.

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Credit: Tesla

A Tesla executive managing the Australian and surrounding markets has detailed the company’s plans to move away from rapid pricing changes with the arrival of the new Model Y, especially as electric vehicle (EV) competition from other Chinese automakers arrives in Australia and surrounding markets.

Thom Drew, Tesla’s Country Director for New Zealand and Australia, said in an interview with Chasing Cars on Friday that the recently refreshed Model Y will make it to Australian markets with more consistent pricing. The statement comes after the Model Y remained Australia’s best-selling EV in 2024, and he says that the era of the Tesla price war seems to be winding down as the SUV gets more affordable.

“We are certainly not going to get into price wars,” Drew said. “I know we have famously been known for changing our prices rapidly over the past several years.

“I really think we have gotten to a point with our pricing where it is where it should be. Once we release the general production pricing for Model Y, I think we are at a really good point. Particularly with the refinements on the [upgraded] vehicle, it is exceptional value for money.”

First deliveries of the Launch Edition Model Y refresh are expected in May, and Drew says initial shipments will be large in volume to match significant demand for the EV. The executive also confirmed that the highly-coveted rear-wheel-drive (RWD) model, the Launch Edition of which is currently sold out, will go on sale again as the regular edition in the weeks to come.

At the time of writing, you can still order the Launch Edition configuration of Tesla’s Long Range, all-wheel-drive (AWD) Model Y on its online order configurator.

READ MORE ON TESLA’S NEW MODEL Y: Australia’s top car website gives Tesla Model Y and Model 3 its best EV awards

It’s not clear at this time if Tesla plans to employ similar strategies in markets beyond the Asia-Pacific, though Drew highlights the pricing stability efforts as a necessary measure to remain competitive amongst incoming EVs from Chinese automakers. Between this and optimizing consumer experiences by making great vehicles, the executive explains that the company remains intent on holding onto its number one seller spot.

“We need to make sure we are hyper-focussed on the quality of our products and our competitiveness,” he says. “[We need to] be looking around today and making sure that we have the best ownership experience to keep our brand at the number-one point.”

At this point, Drew also says that the Model Y is the most affordable option in the Australian market, highlighting that keeping the price stable should hold competitors off for the foreseeable future, at the very least. The news also comes as reports say that Tesla may already be looking to launch an even cheaper Model Y in China, which could make the vehicle even more competitive with future iterations.

“At the moment, there is no cheaper model that I am aware of,” Drew adds. “If there was one, absolutely [we would have our hand up].”

The Australian market requires right-hand-drive (RHD) vehicles, meaning that they drive on the left side of the road and are equipped with steering wheels on the right side of the automobile. Tesla’s Gigafactory in Shanghai supplies the markets in Australia, New Zealand and multiple surrounding regions throughout the Asia-Pacific.

Tesla launched the upgraded Model Y in China in January, after months of speculation that the refreshed SUV would soon be launched. The automaker began initial deliveries of the Launch Edition Model Y refresh in China last month, officially transitioning to the sale of the regular edition of the vehicle at the beginning of March.

Australia has received 107k of Tesla’s 1 million exports from Giga Shanghai: report

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Could Tesla vandalism fuel higher insurance prices?

Experts say that vandalism against Tesla vehicles could make insurance companies increase rates—or drop coverage for the brand altogether.

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Credit: Joe Tegtmeyer/X

Tesla owners have recently experienced a substantial uptick in vandalism events in protest of CEO Elon Musk and recent developments with the Trump administration, and some say that it could lead to higher insurance rates if it continues.

In a report on Sunday, Insurify Data Journalist Matt Brannon told Newsweek that increased vandalism against Tesla’s vehicles could make insurance companies proactively raise their rates in the future. He says that factors such as theft and vandalism are both major considerations for insurance companies when setting rates, though perhaps not to the extent that collisions are.

“If vandalism involving Tesla vehicles continues to rise and doesn’t go back down, we could see rates rise for comprehensive coverage in the future,” Brannon said.

Vandalism is typically covered by comprehensive policies, though Brannon and Bankrate Insurance Analyst Shannon Martin say that these won’t likely increase rates as much as collisions. However, after a lack of engine immobilizers in certain Kia and Hyundai vehicles made them susceptible to theft, sparking widespread TikTok and Instagram challenges in 2022 in which individuals would try to steal these cars, Martin explains that companies could even refuse to insure Tesla vehicles in extreme cases.

“As we have learned from the 2023 TikTok theft trend targeting certain model Kias and Hyundais, if these types of losses continue, carriers could refuse to offer coverage for Tesla vehicles altogether,” Martin explained.

READ MORE ON TESLA INSURANCE: Tesla launches insurance discount for FSD users in these two states

She also says that many other factors could cause insurance rates to rise organically across the industry, including impending tariffs from the Trump administration that have caused uncertainty in recent weeks. Factors such as high repair costs have also caused rate increases in the past few years, particularly for vehicles that are electric.

However, Martin says the recent string of vandalism against Tesla vehicles could cause even steeper rate hikes throughout 2025, even as some of the company’s vehicles are already fairly expensive to insure in some areas.

“Since the recent rise in vandalism is focused on Teslas and not other make vehicles, drivers who carry Tesla Insurance may see a higher premium hike than those who have coverage with other carriers, since the risk of loss isn’t as diversified,” she adds.

Brannon says that insurance rates for electric vehicles (EVs) increased twice as fast as those of gas vehicles in 2024, while full-coverage prices on Teslas have increased over the past few years. Newsweek also says it reached out to insurance companies including Allstate, Geico, Progressive, and State Farm, though no comment was given by the time of publishing.

Vandalism against Tesla vehicles in recent weeks

The news comes as Tesla owners have detailed significant increases to vandalism in recent weeks, as many have tried to protest and speak out against cuts from Musk and Trump’s newly developed government efficiency division.

In February, one Cybertruck owner in Massachusetts said he was getting death threats, yelling passersby, stickers placed on his vehicle, and broad cancellations of client appointments following Musk’s controversial salute at the Trump inauguration ceremony. As a result, the doctor, an immigrant from Syria, said he was considering moving away in hopes to escape the verbal and property attacks.

Tesla owners in Northern California a few weeks ago were left with notes on their cars saying to trade or sell them before February 12, or else it would be “open season.” An activist group called Students Against Nazi Extremism (SANE) claimed responsibility for the notes.

Last week, Musk also responded to a story in which a New York individual drew a Swastika on a person’s Cybertruck, saying that, “Naturally, he drives a Subaru.”

Superchargers have also been targeted in recent attacks, including fresh graffiti last month, with vandals writing the word “Nazi” on some charging posts in Utah along with drawing a Swastika. Tesla said in response that it planned to file charges against the vandals.

Widespread protests have also faced Tesla stores in recent weeks, with one in Oregon even being the victim of multiple rounds of gunfire, while multiple Cybertrucks in Seattle were set on fire—an event now being looked at by the Federal Bureau of Investigation (FBI).

Another string of vandalism and arson at a Tesla store in Colorado resulted in the arrest of two suspects in the past few weeks, after the site was repeatedly tagged with graffiti, some of which said “Nazi cars” on the front windows.

Tesla stores continue to face anti-Musk protests

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This Tesla safety engineer just left after over 14 years

The crash engineer didn’t disclose any specific reasons for his departure. “I have decided now is the time to move on.”

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Credit: IIHS

A key Tesla safety engineer has departed from the company, as shared earlier this month, following nearly a decade and a half spent working across three of the automaker’s locations.

In a post on LinkedIn last week, Tesla’s Principal CAE Crash Safety Engineer, Petter Winberg, announced his departure from the company after working there for over 14 years. Winberg played a major role in Tesla’s efforts to make its vehicles some of the safest out there, starting as a Senior Tech Specialist in 2011 and slowly getting promoted to his current position.

In his position, Winberg worked on crash architectures for the Cybercab, Semi, and future vehicles, along with the Model S, Model X, Model 3, and Model Y, and developing specific accident architectures once Giga Casting production came into play. The executive’s full departure announcement reads as follows:

Elon, 2011: “I want Tesla vehicles to be the safest on the planet” Me: “Challenge accepted”

Having developed Model S, S-DM, X, 3, Y, Y-SP as well as future crash architectures, I have decided now is the time to move on. Thank you Tesla, keep crushing it! What an incredible team, I will miss you all.

READ MORE ON TESLA SAFETY: Tesla executive responds to claims of high fatal accident rate

During his time at Tesla, the engineer worked at the company’s engineering headquarters in Palo Alto, California, before moving to the company’s nearby Fremont factory, then finally landing at the automaker’s Gothenburg, Sweden facilities, where he has served in his current position since January 2020. Prior to this, Winberg also worked at Volvo, Saab, Ford, and Volvo.

The post also elicited a handful of comments from colleagues, including one commenter who called Winberg the “master of crash simulations,” and multiple others who praised him for his guidance and knowledge of the subject.

Tesla has also been heavily focused on making its vehicles safe since the early days, as Winberg points out.

As one example in October, Tesla VP of Vehicle Engineering Lars Moravy reiterated this point by highlighting both the company’s active and passive safety features included in the Model Y and other vehicles. Moravy detailed that, while features built-in for the Autopilot and Supervised Full Self-Driving (FSD) systems provide active safety features meant to help prevent crashes, even if “the worst occurs, [Tesla drivers] will be protected by the best passive safety cars on the planet.”

The company’s vehicles have also earned top safety ratings across four different continents at this point, most recently including a five-star safety rating for the Cybertruck from the top auto regulator in the U.S.

Over the last several months, Tesla has also faced executive and high-profile engineering departures a handful of times, as can probably be expected from most companies of its size.

Some examples include the departure of Safety Policy Lead Marc Van Impe and Chief Information Officer Nagesh Saldi in October, VP of Finance and Business Operations Sreela Venkataratnam in August, and both SVP of Powertrain and Energy Engineering Drew Baglino and VP of Public Policy and Business Development Rohan Patel in April, to name just a few.

This former Tesla engineer now heads a federal tech department

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