News
SpaceX Starlink Gen2 constellation weakened by “partial” FCC grant
More than two and a half years after SpaceX began the process of securing regulatory approval for its next-generation Starlink constellation, the US Federal Communications Commission (FCC) has finally granted the company a license – but only after drastically decreasing its scope.
In May 2020, SpaceX filed its first FCC license application for Starlink Gen2, an upgraded constellation of 30,000 satellites. In the second half of 2021, SpaceX amended its Starlink Gen2 application to take full advantage of the company’s more powerful Starship rocket and further improve the constellation’s potential utility. Only in December 2021 did the FCC finally accept SpaceX’s Gen2 application for filing, kicking off the final review process.
On November 29th, 2022, the FCC completed that review and granted SpaceX permission to launch just 7,500 of the ~30,000 Starlink Gen2 satellites it had requested permission for more than 30 months prior. The FCC offered no explanation of how it arrived at its arbitrary 75% reduction, nor why the resulting number is slightly lower than a different 7,518-satellite Starlink Gen1 constellation SpaceX had already received a license to deploy in late 2018. Adding insult to injury, the FCC repeatedly acknowledges that “the total number of satellites SpaceX is authorized to deploy is not increased by our action today, and in fact is slightly reduced.”
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
That claimed reduction is thanks to the fact that shortly before this decision, SpaceX told the FCC in good faith that it would voluntarily avoid launching the dedicated V-band Starlink constellation it already received a license for in order “to significantly reduce the total number of satellites ultimately on orbit.” Instead, once Starlink Gen2 was approved, it would request permission to add V-band payloads to a subset of the 29,988 planned Gen2 satellites, achieving a similar result without the need for another 7,518 satellites.
In response, the FCC slashed the total number of Starlink Gen2 satellites permitted to less than the number of satellites approved by the FCC’s November 2018 Starlink V-band authorization; limited those satellites to middle-ground orbits, entirely precluding Gen2 launches to higher or lower orbits; and didn’t even structure its compromise in a way that would at least allow SpaceX to fully complete three Starlink Gen2 ‘shells.’ Worse, the FCC’s partial grant barely mentioned SpaceX’s detailed plans to use new E-band antennas on Starlink Gen2 satellites and next-generation ground stations, simply stating that it will “defer acting on” the request until “further review and coordination with Federal users.”

Throughout the partial grant, the FCC couches its decision to drastically downscale SpaceX’s Starlink Gen2 constellation in terms of needing more time “to evaluate the complex and novel issues on the record before [the Commission],” raising the question of what exactly the Commission was doing instead in the 30 months since SpaceX’s first Gen2 application and 15 months since its Gen2 modification. In comparison, SpaceX received a full license for its 7,518-satellite V-band constellation less than five months after applying. SpaceX’s 4,408-satellite Starlink Gen1 constellation – the first megaconstellation ever reviewed by the modern FCC – was licensed 16 months after its first application and eight months after a modified application was submitted.
Adding to the oddity of the unusual and inconsistent decision-making in this FCC ruling, the Commission openly acknowledges that the idea to grant SpaceX permission to launch a fraction of its Starlink Gen2 constellation came from Amazon’s Project Kuiper [PDF], a major prospective Starlink competitor. The FCC says it agreed with Amazon’s argument, stating that “the public interest would be served by taking this approach in order to permit monitoring of developments involving this large-scale deployment and permit additional consideration of issues unique to the other orbits SpaceX requests.”
The V-band Starlink constellation already approved by the FCC was for 7,518 satellites in very low Earth orbits (~340 km). In the first 4,425-satellite Starlink constellation licensed by the FCC, the Commission gave SpaceX permission to operate 2,814 satellites at orbits between 1100 and 1300 kilometers. Increasingly conscious of the consequences of space debris, which would last hundreds of years at 1000+ kilometers, SpaceX later requested permission in 2019 and 2020 to launch those 2,814 satellites to around 550 kilometers, where failed satellites would reenter in just five years. For unknown reasons, the FCC only fully approved the change two years later, in April 2021.
The “other orbits [requested by SpaceX]” that the FCC says create unique issues that demand “additional consideration” of Starlink Gen2 are for 19,400 satellites between 340 and 360 kilometers and 468 satellites between 604 and 614 kilometers. Starlink satellites are expected to be around four times heavier and feature a magnitude more surface area, but the fact remains that the FCC has already granted SpaceX permission to launch almost 3000 smaller satellites to orbits much higher than 604 kilometers and more than 7500 satellites to orbits lower than 360 kilometers. It’s thus hard not to conclude that the Commission’s claims that a partial license denial was warranted by “concerns about orbital debris and space safety,” and “issues unique to…other orbits” are incoherent at best.
Perhaps the strangest inclusion in the partial grant is a decision by the FCC to subject SpaceX to an arbitrary metric devised by another third-party, for-profit company LeoLabs. In a March 2022 letter, LeoLabs reportedly proposed that “SpaceX’s authorization to continue deploying satellites” be directly linked to an arbitrary metric measuring “the number of years each failed satellite remains in orbit, summed across all failed satellites.” The FCC apparently loved the suggestion and made it an explicit condition of its already harsh Starlink Gen2 authorization, even adopting the arbitrary limit of “100 object years” proposed by LeoLabs.
In other words, once the sum of the time required for all failed Starlink Gen2 satellites to naturally deorbit reaches 100 years, the FCC will force SpaceX to “cease satellite deployment” while it “[reviews] sources of satellite failure” and “determine[s] whether there are any adequate and reliable mitigation measures going forward.” The FCC acknowledges that the arbitrary 100-year limit means that the failure of just 20 Starlink satellites at operational orbits would force the company to halt launches. The Commission does not explain how it will decide when SpaceX can restart Starlink launches after a launch halt. SpaceX must simultaneously follow the FCC’s deployment schedule, which could see the company’s license revoked if it doesn’t deploy 3,750 Starlink Gen2 satellites by November 2028 and all 7,500 satellites by November 2031.
Based on the unofficial observations of astrophysicist Jonathan McDowell, SpaceX currently has more 30 failed Starlink Gen1 satellites at or close to their operational altitudes of 500+ kilometers, meaning that SpaceX would almost certainly be forced to stop launching Gen1 satellites if this arbitrary new rule were applied to other constellations. The same is true for competitor OneWeb, which had a single satellite fail at around 1200 kilometers in 2021. At that altitude, it will likely take hundreds of “object years” to naturally deorbit, easily surpassing LeoLabs’ draconian 100-year limit.
In theory, the FCC does make it clear that it will consider changing those restrictions and allowing SpaceX to launch more of its proposed Starlink Gen2 constellation in the future. But the Commission has also repeatedly demonstrated to SpaceX that it will happily take years to modify existing licenses or approve new ones – not a particularly reassuring foundation for investments as large and precarious as megaconstellations.
Ultimately, short of shady handshake deals in back rooms, the FCC’s partial grant leaves SpaceX’s Starlink Gen2 constellation in an undesirable position. For the company to proceed under the current license, it could be forced to redesign its satellites and ground stations to avoid the E-band, or gamble by continuing to build and deploy satellites and ground stations with E-band antennas without a guarantee that it’ll ever be able to use that hardware. There is also no guarantee that the FCC will permit SpaceX to launch any of the ~22,500 satellites left on the table by the partial grant, which will drastically change the financial calculus that determines whether the constellation is economically viable and how expansive associated infrastructure needs to be.
Additionally, if SpaceX accepts the gambit and launches all 7,500 approved Gen2 satellites only for the FCC to fail to approve expansions, Starlink Gen2 would be stuck with zero polar coverage, significantly reducing the constellation’s overall utility. Starlink Gen2 likely represents an investment of at least $30-60 billion (assuming an unprecedentedly low $1-2M to build and launch each 50-150 Gbps satellite). With its partial license denial and the addition of several new and arbitrary conditions, the FCC is effectively forcing SpaceX to take an even riskier gamble with the billions of dollars of brand new infrastructure it will need to build to manufacture, launch, operate, and utilize its Starlink Gen2 constellation.
Investor's Corner
New drone video shows Tesla’s Optimus Factory reaching a turning point
New drone footage shows Tesla’s dedicated Optimus factory steel frame nearing completion at Giga Texas.
Tesla’s dedicated Optimus factory at Gigafactory Texas is closing in on a finished steel frame, according to drone footage posted Thursday afternoon by longtime site observer Joe Tegtmeyer. In the video, Tegtmeyer said structural steel assembly is now about five column grids away from reaching the building’s north perimeter beam, putting the primary skeleton in its final stretch roughly six months after Tesla broke ground on the North Campus site in late March.
The Giga Texas Optimus Factory latest update … construction keeps moving fast!
Steel assembly is now only about 5 column grids from the north perimeter beam. Concrete is going in on the three upper floors, rebar is still being laid for more pours, and footing / grade-beam work… pic.twitter.com/qvFPvwnYzW
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) September 17, 2026
Tegtmeyer’s footage shows concrete already going in on three upper floors while crews continue laying rebar and pouring grade beam footings at ground level. That kind of parallel work, steel rising at one end of the site while concrete sets at the other, is a scheduling approach Tesla used at the original Giga Texas building and appears to be repeating here to save time before the plant’s targeted 2027 production start.
Teslarati has tracked the building’s progress since Tesla confirmed construction was officially underway in May, when the first steel structure went up on what was then bare, reclaimed land. The facility is part of a more than 5.2 million square foot expansion of Giga Texas’s North Campus that Tesla has said will eventually run nearly the length of the existing vehicle factory, over 4,000 feet, while sitting somewhat narrower. Musk has pegged the long term output target at 10 million Optimus units a year once the line is running at full capacity, a volume that would dwarf the one million unit pilot line Tesla is standing up separately at its Fremont, California factory.
Tesla Giga Texas to feature massive Optimus V4 production line
The Texas facility sits alongside another major buildout on the same campus. Terafab, the joint Tesla and SpaceX chip fabrication plant that will eventually supply the silicon running Optimus units in the field. Housing robot assembly and chip production on the same grounds is a deliberate supply chain decision, cutting down on the shipping and lead time that would otherwise sit between the two.
Tesla has not given an updated timeline beyond its previously stated goal of bringing high volume Optimus production online at the site in the summer of 2027. Fremont’s smaller pilot line began mass producing the current Gen 3 robot in January, with that plant expected to build tens of thousands of units this year primarily to generate the real world data Tesla needs to refine the robot’s software before Giga Texas ramps up. Six months of visible construction progress, tracked almost entirely through Tegtmeyer’s recurring drone flights, gives the clearest outside look yet at how seriously Tesla is treating that 2027 deadline.
Investor's Corner
Tesla and SpaceX take “Terafab” Trademark fight to Federal Court
Tesla and SpaceX sue a small Illinois firm after cease and desist letters over Terafab.
Tesla and SpaceX are asking a federal judge to rule that their planned Terafab chip factory does not infringe a small Illinois company’s trademark, a request that arrives only after months of quiet negotiation broke down this summer.
The dispute traces to May 18, when Tesla filed three U.S. trademark applications for “Terafab” and “Tesla Terafab,” covering semiconductor chips and related chip making services. TERA-print LLC, a nanotechnology company that has held a federal trademark for “Tera-Fab” since 2021, responded five days later with a cease and desist letter. According to the lawsuit, first reported by Reuters, TERA-print argued that Tesla and SpaceX’s use of “Terafab” would confuse consumers familiar with its own trademark, which covers a desktop photolithography printer sold to researchers for sensor and bioengineering work.
What stands out in the filing is the timing of TERA-print’s own paperwork. One day before sending that cease and desist letter, on May 22, TERA-print applied to expand its existing registration to cover semiconductor materials, silicon chips, nanoelectronic devices and AI design services, categories it had not previously claimed. Tesla and SpaceX call that filing opportunistic in their complaint, noting it arrived two months after Tesla’s public Terafab announcement and just days after Tesla’s own trademark applications went in.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
By June 10, TERA-print was threatening to sue for federal trademark infringement, false designation of origin and unfair competition, the complaint states. Rather than wait to be sued, Tesla, SpaceX and SpaceXAI met with TERA-print six separate times between June and August trying to resolve the dispute directly. Those talks collapsed, and the companies filed for declaratory judgment this week in the U.S. District Court for the Western District of Texas, asking a judge to find that “Terafab” does not infringe TERA-print’s mark before TERA-print can file a claim of its own.
TERA-print isn’t backing down. The company told PCMag it discussed a settlement with Tesla as recently as September 2 and feels misled by what it called Tesla’s professed interest in settling. Its CTO, Andrey Ivankin, said TERA-print holds a Defense Department contract to fabricate semiconductors and partially owns Mattiq Inc., an AI company built on TERA-print’s products, and that the company will vigorously defend its rights.
Tesla and SpaceX argue the overlap is superficial. Terafab is planned as a $16.8 billion complex spanning roughly 100 million square feet at the Grimes County site SpaceX confirmed last month, built to produce chips for Optimus robots, Tesla’s AI computing needs and SpaceX’s orbital data center ambitions, a scale and purpose the companies say no reasonable consumer would confuse with a tabletop lab printer. TERA-print’s product line has stayed focused on lithography tools for biological and sensor research since it registered its mark in 2021.
The trademark fight is the second legal dispute tied to the Terafab project in the past week, following a separate SpaceX suit aimed at keeping company records about the facility out of public view, as KBTX reported. Whether construction proceeds under the Terafab name now depends on a federal judge in Austin.
News
NHTSA just escalated its Tesla Cybercab investigation in a big way
NHTSA escalated its Cybercab audit into a sworn Special Order with a September 30 deadline.
Federal regulators have moved from asking Tesla questions about its Cybercab to demanding sworn answers. The National Highway Traffic Safety Administration issued a Special Order that requires a Tesla officer to sign an affidavit attesting to the completeness of the company’s responses, with a deadline of September 30.
The order builds on Audit Query AQ26002, which NHTSA opened on September 3, the same day Tesla began commercial Cybercab service in Austin. Teslarati covered that initial inquiry when it surfaced, noting the agency wanted to understand how Tesla certified a vehicle with no permanently attached steering wheel, pedals, or mirrors as compliant with Federal Motor Vehicle Safety Standards. A Special Order is a different tool and converts a fact finding review into a legally enforceable demand, the same mechanism NHTSA used against Tesla in 2023 during its Autopilot investigation.
Several of the 21 requests target a specific gap in Cybercab’s design. One asks whether Tesla used temporarily attached human controls at any point to help certify the vehicle, and if so, which standards depended on that equipment being present. Another quotes an existing rule directly: “The service brakes shall be activated by means of a foot control.” Cybercab has no foot pedal. NHTSA wants a detailed explanation of how the vehicle satisfies that requirement, and how it complies without the kind of exemption granted to Zoox in July under Part 555, the regulatory pathway built for steering wheel free vehicles.
The order does not claim Cybercab is unsafe or that Tesla broke a rule. It requires Tesla to explain, under oath, the reasoning behind decisions the company already made when it self-certified the vehicle. That distinction matters, but so does the exposure. Motor1’s reporting, summarized here, put potential civil penalty exposure as high as $139 million if NHTSA later finds the certification was flawed, on top of whatever criminal risk comes with a false sworn statement.
Tesla has not said publicly how it plans to respond. Cybercab is still carrying passengers in Austin through the Robotaxi app while the September 30 deadline approaches, and the company has continued expanding the vehicle’s footprint even as the regulatory question remains open. The Special Order does not pause any of that and just sets a date by which Tesla has to put its certification logic on the record, with a company officer’s name attached to it.