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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.
Tesla launched the slightly larger Model Y L in China last year, and it became a hit in no time. The longer wheelbase, larger interior, and slightly more forgiving legroom area in the Model Y L became a sought-after possibility for U.S. buyers, who have been begging the company for a larger SUV.
Now, Tesla needs it more than ever, especially considering the Model X was discontinued alongside its Model S sibling earlier this year. It looks to be more likely than ever, and based on recent reports, it will fall in line with CEO Elon Musk’s prediction that it would arrive in the United States in late 2026.
Recent reports from Forbes and Not a Tesla App both have indicated Tesla plans to bring the Model Y L to the U.S. this year. The reports cite “credible sources,” and an analyst from AutoForecast Solutions named Sam Fiorani stated that the car would enter production later this year.
Fiorani said:
“China, Australia, and India are supplied by the factory in China, which will not supply vehicles to the U.S. Production of the Model Y L is expected to begin in the U.S. in September, which will lead to sales beginning before the end of 2026.”
Production would take place at Gigafactory Texas.
Additionally, a few Model Y L units have been spotted under wraps in the United States, giving more indication that Tesla plans to bring the vehicle to the U.S. When Tesla is close to launching a vehicle in the U.S., it is not uncommon to see these models with the exact car covers that you see below:
Looks like another Tesla Model Y L was spotted in the U.S.! pic.twitter.com/jhsdkcN5Go
— TESLARATI (@Teslarati) June 26, 2026
It makes sense, especially considering Musk hinted the Model Y L would make it to the U.S. in late 2026, but it was up in the air. The CEO said the advent of self-driving might not warrant a larger SUV coming to the U.S. market specifically.
The problem is, consumers do not want to hear that. They love Tesla’s tech, FSD, and other features, but they need more space for growing families. The Model X is gone, and the most anyone can fit in a Tesla right now is seven people in the seven-seat Model Y. That back row is truly only large enough to fit small children comfortably.
Tesla fans have requested a full-size SUV, and the company has made some hints that it could be in the plans.
The Model Y and Model Y L differ noticeably in size, with the Model Y L being a stretched, six-seat variant designed for great interior room. The Standard Model Y measures approximately 4,790mm in length, 1,982 mm in width with the mirrors folded, 1,624mm in height, and 2,890mm in wheel base.
In contrast, the Model Y L extends to be about 4,969–4,976mm long (roughly 179mm or 7 inches longer), stands 1,668mm tall (+44mm), and features a significantly longer 3,040 mm wheelbase (+150mm), while maintaining the same width.
This elongation primarily benefits rear passenger space and enables a 2+2+2 seating layout with captain’s chairs, though it slightly reduces maximum cargo capacity behind the rearmost seats and adds a bit of overall mass and turning radius. The result is a more spacious family hauler that still shares the core footprint and agile character of the original Model Y.
In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla looks keen to bring larger Model Y L to the U.S.
One of Tesla’s biggest threats just got banned in the U.S.
