SpaceX
SpaceX’s first dedicated Starlink launch announced as mass production begins
SpaceX has announced a launch target of May 2019 for the first batch of operational Starlink satellites in a sign that the proposed internet satellite constellation has reached a major milestone, effectively transitioning from pure research and development to serious manufacturing.
R&D will continue as SpaceX Starlink engineers work to implement the true final design of the first several hundred or thousand spacecraft, but a significant amount of the team’s work will now be centered on producing as many Starlink satellites as possible, as quickly as possible. With anywhere from 4400 to nearly 12,000 satellites needed to complete the three major proposed phases of Starlink, SpaceX will have to build and launch a minimum of ~2200 satellites in the next five years, averaging 37 high-performance, low-cost spacecraft built and launched every month for the next 60 months.
A shift in the Stars
Despite the major challenges ahead of SpaceX, things seem to be going quite smoothly with the current mix of manufacturing and development. As previously reported on Teslarati, SpaceX CEO Elon Musk forced the Starlink group through a painful reorganization in the summer of 2018, challenging the remaining leaders and their team to launch the first batch of operational Starlink satellites no later than June 2019. As a consequence, a sort of compromise had to be reached where one additional group of quasi-prototype satellites would be launched before settling on a truly final design for serious mass-production.
According to SpaceX filings with the FCC, the first group of operational satellites – potentially anywhere from 75 to 1000 or more – will rely on just one band (“Ku”) for communications instead of the nominal two (“Ku” and “Ka”), a change that SpaceX says will significantly simplify the first spacecraft. By simplifying them, SpaceX believes it can expedite Starlink’s initial deployment without losing a great deal of performance or interfering with constellations from competitors like OneWeb.


Somewhere along the line, SpaceX would iteratively improve each subsequent ‘generation’ of Starlink satellites until they reached the nominal performance characteristics outlined in the company’s original constellation application. Knowing SpaceX, improvements would continue for as long as lessons continued to be learned from operating hundreds and eventually thousands of orbital spacecraft.
As one concrete example, recent SpaceX FCC documents stated that the first 75 Starlink spacecraft would feature a less-optimized reentry design, meaning that a select few components will not entirely burn up during reentry, creating debris that poses a
While the FCC has yet to grant SpaceX’s requested modifications, the other major goal is to reduce the operating orbit of the first phase of 1584 satellites to 550 km (340 mi), a change that SpaceX says will drastically reduce the potential lifespan of any orbital debris in the unlikely event of their creation. A lower altitude also places a major cushion between SpaceX’s first ~1500 satellites and the orbits of several other planned constellations, including OneWeb and Telesat.
Hello, Production Hell, my old friend
Meanwhile, SpaceX’s Starlink program has begun the often painful steps of transitioning from a venture primarily focused on research and development to one focused mainly on building production lines and supply chains and manufacturing hardware. SpaceX’s Starlink facilities are currently housed in three nearby buildings located in Redmond, Washington, likely offering approximately 150,000 square feet (14,000 m^2) for a mix of office, development, and production spaces. At least one of the three non-office buildings could potentially become dedicated to production while one building – approximately 40,000 ft^2 (~3500 m^2) – has already been completely transformed into a prototype of a Starlink satellite production line, supporting manufacturing for first several dozen quasi-prototype spacecraft. For reference,
Mass-producing spacecraft at the scale needed to build even half of those needed for the first phase of ~4400 Starlink satellites will be a feat unprecedented in the history of the space industry. Barring FCC exemptions (possible but unlikely), SpaceX needs to launch ~2200 Starlink satellites between now and April 2024. To complete the first phase, the final number of satellites rises to ~4400. Adding on a proposed constellation of very low Earth orbit (
Perhaps SpaceX will be able to garner invaluable insight from the lessons its sister company learned during Model 3’s torturous “production hell”, in which the car company had to grow its production volume by almost a magnitude as quickly as possible. Ironically, it may even be the case that SpaceX has the easier task relative to Tesla.
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Elon Musk
Elon Musk will give ‘every kid in America’ a SpaceX share in 2027
Elon Musk said he is planning to give “every one of his SpaceX shares to every kid in America” in 2027, stating that “this will be the first of many.”
SpaceX went public earlier this year, and its stock price has been relatively stable since leveling off shortly after its IPO. Based on its current price, it’s a gift of just over $10 billion to children across the United States.
It appears to be closely related to President Donald Trump’s bank accounts for children, which were set up earlier this year as Trump Accounts.
Just hours earlier, Anthropic had announced the establishment of its Anthropic Public Benefit Fund, “a new wholly-owned entity dedicated entirely to public benefit.” Musk responded by stating he recommended “giving the shares directly to the public,” and that he would be doing it that way.
Just a little bit later, Musk said children across the U.S. would be getting a share from him:
Next year, I will give one of my SpaceX shares to every kid in America.
This will be the first of many.
— Elon Musk (@elonmusk) October 19, 2026
There are roughly 70 million children, meaning someone under the age of 18, in the United States, according to the Federal Interagency Forum on Child and Family Statistics. Musk’s ownership of SpaceX stock shows he has around 849 million Class A shares of SpaceX stock, according to filings with the SEC.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
News
SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla
SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.
SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.
A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.
“Shit, I better start following their X account if i’m gonna be helping run the company”
— Whole Mars Catalog (@wholemars) October 18, 2026
Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.
The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.
The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.