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
Tesla stock gets hit with shock move from Wall Street analysts
Despite Tesla not being an automotive company exclusively, the Wall Street firms and analysts covering its shares are widely dialed in on its performance regarding quarterly deliveries. While it holds some importance, Tesla, from an internal perspective, is more focused on end-to-end AI, Robotaxi, self-driving, and its Optimus robot.
Tesla price targets (NASDAQ: TSLA) have received several cuts over the past few days as Wall Street firms are adjusting their forecast for the company’s stock following a miss in quarterly delivery figures for the first quarter.
Despite Tesla not being an automotive company exclusively, the Wall Street firms and analysts covering its shares are widely dialed in on its performance regarding quarterly deliveries. While it holds some importance, Tesla, from an internal perspective, is more focused on end-to-end AI, Robotaxi, self-driving, and its Optimus robot.
In a notable shift underscoring mounting caution on Wall Street, three prominent investment banks slashed their price targets on Tesla Inc. shares over the past two weeks following the electric-vehicle giant’s disappointing first-quarter 2026 delivery numbers. The revisions highlight softening EV sales figures and, according to some, execution challenges.
Tesla delivered 358,023 vehicles in the January-to-March period, a 14 percent sequential decline and a miss versus consensus forecasts of roughly 365,000 to 370,000 units.
Production hit 408,000 vehicles, yet the delivery shortfall, paired with limited updates on autonomous-driving progress and new-model timelines, rattled investors. Shares fell about 8.7 percent since April 1.
Wall Street analysts are now adjusting their forecasts accordingly, as several firms have made adjustments to price targets.
Goldman Sachs
Goldman Sachs cut its target from $405 to $375 while maintaining a Hold rating. Analyst Mark Delaney pointed to soft EV sales trends and margin pressures.
Truist Financial followed on April 2, lowering its target from $438 to $400 (Hold unchanged), with analyst William Stein citing misses in both auto deliveries and energy-storage deployments, plus a lack of fresh details on AI initiatives and upcoming vehicles.
It is a strange drop if using AI initiatives and upcoming vehicles as a justification is the primary focus here. Tesla has one of the most optimistic outlooks in terms of AI, and CEO Elon Musk recently hinted that the company is developing something for the U.S. market that will be good for families.
Baird
Baird’s Ben Kallo made a very modest trim, reducing its target from $548 to $538, keeping and maintaining the ‘Outperform’ rating it holds on shares. Kallo said the price target adjustment was a prudent recalibration tied to near-term risks.
Truist
Truist analyst William Stein pointed to deliveries and energy storage missing expectations, and cut his price target to $400 from $438. He maintained the ‘Hold’ rating the firm held on the stock previously.
JPMorgan
Adding to the bearish tone on Monday, April 6, JPMorgan’s Ryan Brinkman reiterated an Underweight (Sell) rating and $145 price target, implying roughly 60 percent downside from recent levels.
Brinkman highlighted a “record surge in unsold vehicles” that adds to free-cash-flow woes, with inventory swelling to an estimated 164,000 units.
Tesla’s comfort level taking risks makes the stock a ‘must own,’ firm says
He lowered his Q1 2026 EPS estimate to $0.30 from $0.43 and full-year 2026 EPS to $1.80 from $2.00, both below consensus. Brinkman noted that expectations for Tesla’s performance have “collapsed” across financial and operating metrics through the end of the decade, yet the stock has risen 50 percent, and average price targets have increased 32 percent.
This disconnect, he argued, prices in an unrealistic sharp pivot to stronger results beyond the decade, while near-term realities remain materially weaker.
He advised investors to approach TSLA shares with a “high degree of caution,” citing elevated execution risk, competition, and valuation concerns in lower-price, higher-volume segments.
The revisions have pulled the overall consensus lower. Aggregators show the average 12-month price target now ranging from approximately $394 to $416 across roughly 32 analysts, with a prevailing Hold rating and a mixed split of Buy, Hold, and Sell recommendations.
Brinkman’s $145 target stands as a notable outlier on the bearish side.
Not Everyone Has Turned Bearish on Tesla Shares
Not all firms turned more pessimistic. Wedbush Securities held its bullish $600 target, stressing that AI and full self-driving technology represent the core value drivers, with current delivery softness viewed as temporary.
These moves reflect a broader Wall Street recalibration: near-term EV demand faces pressure from high interest rates, intensifying competition, especially from lower-cost Chinese rivals, and slower adoption.
At the same time, many analysts continue to see Tesla’s technology leadership in software-defined vehicles, autonomy, robotaxis, and energy storage as pathways to outsized long-term gains once macro conditions ease and new models launch.
With Tesla’s first-quarter earnings report due later this month, upcoming details on cost discipline, Cybertruck ramp-up, and AI roadmaps will likely shape whether these target adjustments prove prescient or overly cautious. Investors remain divided between immediate delivery realities and the company’s ambitious vision.
Tesla shares are trading at $348.82 at the time of publishing.
Elon Musk
Tesla Full Self-Driving feature probe closed by NHTSA
Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.
A probe into a popular Tesla self-driving feature has been closed by the National Highway Traffic Safety Administration (NHTSA) after over a year of scrutiny from the government agency.
The NHTSA has officially closed its investigation into Tesla’s Actually Smart Summon (ASS) feature, marking a regulatory win for the electric vehicle maker after more than a year of scrutiny.
Here’s our coverage on the launch of the probe:
Tesla’s Actually Smart Summon feature under investigation by NHTSA
The preliminary investigation, opened last January, examined roughly 2.59 million Tesla vehicles equipped with the feature across the Model S, Model X, Model 3, and Model Y lineups. ASS is not available for Cybertruck currently.
Actually Smart Summon allows owners to move their parked Tesla via a smartphone app remotely, directing the vehicle short distances in parking lots or private property while the driver supervises from the phone.
Here’s a clip of us using it:
Summon has had some good performances for me in the past
This was in October: https://t.co/w69Zp2bqeg pic.twitter.com/PVXSRj19E0
— TESLARATI (@Teslarati) April 5, 2026
Introduced as an upgrade to the original Smart Summon, the feature was designed to enhance convenience but drew attention after reports of low-speed incidents where vehicles bumped into stationary objects like posts, parked cars, or garage doors.
The NHTSA’s Office of Defects Investigation reviewed 159 incidents, including one formal Vehicle Owner’s Questionnaire complaint and media reports.
Notably, all events occurred at very low speeds, resulted only in minor property damage, and involved zero injuries or fatalities. The agency determined that the incidents were “extremely rare”, a fraction of one percent across millions of Summon sessions, and did not indicate a systemic safety-related defect.
A key factor in the closure was Tesla’s proactive response through over-the-air (OTA) software updates.
During the probe, Tesla deployed at least six updates that improved camera-based object detection, enhanced neural network performance for obstacle recognition, and refined the system’s response to potential hazards. These iterative improvements, delivered wirelessly to the entire fleet, addressed the primary concerns around detection reliability and operator reaction time.
Critics of Tesla’s autonomous features had initially pointed to the crashes as evidence of rushed deployment, especially given the feature’s reliance on the company’s vision-only Full Self-Driving (FSD) stack. However, NHTSA’s decision to close the case without seeking a recall underscores the low-severity nature of the events and the effectiveness of software-based fixes in modern vehicles.
It definitely has its flaws. I used ASS yesterday unsuccessfully:
It was pouring when I left the gym so I tried to Summon my Model Y
It turned the opposite way and drove out of range, stopping here and forcing me to walk even further across the lot in the rain for it 🤣
One day pic.twitter.com/iD10c8sriB
— TESLARATI (@Teslarati) April 5, 2026
However, improvements will come, and I’m confident in that.
The closure comes as Tesla continues to push boundaries with its autonomous driving ambitions, including unsupervised FSD rollouts and robotaxi initiatives. For owners, the ruling reinforces confidence in Actually Smart Summon as a convenient, low-risk tool rather than a hazardous experiment.
While broader NHTSA reviews of Tesla’s higher-speed FSD capabilities remain ongoing, this outcome highlights how data-driven analysis and rapid OTA remediation can satisfy regulators in the evolving landscape of automated driving technology.
Tesla has not issued an official statement on the closure, but the move is widely viewed as bullish for the company’s autonomy roadmap, reducing one layer of regulatory overhang and allowing focus on further refinements.
Elon Musk
Tesla uses Model S and X ‘sentimental’ value to enforce massive pricing move
By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.
Tesla is using the “sentimental” value that CEO Elon Musk talked about with the Model S and Model X to enforce one of the most massive pricing moves it has ever applied as it begins to phase out the flagship vehicles.
Tesla quietly executed one of its most calculated pricing plays yet. After officially ending production of the Model S and Model X, the company raised prices on every remaining new and demo unit by roughly $15,000.
The refreshed starting prices now sit at:
- $109,990 for the Model S AWD
- $124,900 for the Model S Plaid
- $114,900 for the Model X AWD
- $129,900 for the Model X Plaid
NEWS: Tesla has raised the price on all remaining new (and demo) Model S and Model X vehicles left in inventory by $15,000.
New starting prices:
• Model S AWD: $109,990
• Model S Plaid: $124,900
• Model X AWD: $114,900
• Model X Plaid: $129,900 pic.twitter.com/qBEhsYAfXr— Sawyer Merritt (@SawyerMerritt) April 5, 2026
Every vehicle comes fully loaded with the Luxe Package, Full Self-Driving Supervised, four years of premium connectivity and service, and lifetime free Supercharging. What looks like a simple inventory adjustment is, in reality, a masterclass in monetizing nostalgia.
These are not ordinary cars. For many owners, the Model S and Model X represent the purest expression of Tesla’s original promise—the sleek, over-engineered flagships that proved electric vehicles could be faster, quieter, and more desirable than their gasoline counterparts.
Tesla removes Model S and X custom orders as sunset officially begins
They are the vehicles that carried Elon Musk’s vision from Silicon Valley startup to global automaker.
The final units rolling off the line carry an emotional weight that numbers alone cannot capture. Buyers are not simply purchasing transportation; they are acquiring a piece of Tesla history, the last examples of the very models that defined the brand’s first decade.
Tesla, with this move, understands this sentiment deeply.
By slashing production and creating immediate scarcity, the company has transformed these remaining vehicles into limited-edition relics. The price hike is not driven by rising material costs or new features.
It is driven by the knowledge that a certain segment of buyers, loyalists, collectors, and enthusiasts, will pay a premium precisely because these cars are about to disappear. The strategy converts emotional attachment into margin.
Where other automakers might discount outgoing models to clear lots, Tesla is betting that sentiment is worth more than volume.
The move also quietly rewards existing owners. Scarcity instantly boosts resale values for the hundreds of thousands of Model S and X already on the road, reinforcing brand loyalty among the very people who helped build Tesla’s reputation.
In the end, Tesla’s pricing decision reveals a sophisticated understanding of its audience. As the company pivots toward next-generation platforms, it has found a way to extract one final, lucrative chapter from its heritage.
For buyers willing to pay the new prices, the premium is not just for the car; it is for the feeling of owning the last true originals. Tesla has turned sentiment into strategy, and in the process, reminded everyone that even in the EV era, emotion remains a powerful line on the balance sheet.
Tesla stock gets hit with shock move from Wall Street analysts
Tesla Full Self-Driving feature probe closed by NHTSA
