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SpaceX tweaks Starlink Gen2 plans to add Falcon 9 launch option
SpaceX says it has revised plans for its next-generation Starlink Gen2 constellation to allow the upgraded satellites to launch on its workhorse Falcon 9 rocket in addition to Starship, a new and unproven vehicle.
Set to be the largest and most powerful rocket ever flown when it eventually debuts, SpaceX’s two-stage Starship launch vehicle is also intended to be fully reusable, theoretically slashing the cost of launching payloads into and beyond Earth orbit. Most importantly, SpaceX says that even in its fully-reusable configuration, Starship should be capable of launching up to 150 tons (~330,000 lb) to low Earth orbit (LEO) – nearly a magnitude more than Falcon 9. However, once said to be on track to debut as early as mid-2021 to early 2022, it’s no longer clear if Starship will be ready for regular Starlink launches anytime soon.
In August 2021, SpaceX failed a major Starlink Gen2 revision with the FCC that started the company along the path that led to now. That revision revealed plans to dramatically increase the size and capabilities of each Gen2 satellite, boosting their maximum throughput from about 50 gigabits per second (Gbps) to ~150 Gbps. Just as importantly, SpaceX’s August 2021 modification made it clear that the company would prefer to launch the entire constellation with Starship, although it included an alternative constellation design that would lend itself better to Falcon 9 launches.
In January 2022, SpaceX chose to solely pursue the constellation optimized for Starship, strongly indicating that the company believed the rocket would be ready to support Starlink launches in the near future – or at least around the same time the constellation receives its Gen2 FCC license. With the benefit of technical Starlink Gen2 satellite details and renders provided by SpaceX and CEO Elon Musk in Q2 2022, a single Starship Gen2 launch using the current satellite and rocket designs and carrying 54 satellites could potentially deploy around 7-8 times more usable bandwidth than a Falcon 9 with Starlink V1.5, meaning that Starship could achieve similar deployment results with just a few launches per year.
In theory, that makes it at least somewhat easier for Starship to make a major impact even as SpaceX works to ramp up the brand-new rocket’s launch cadence, a task that has almost always taken several years.
However, additional changes made to its Starlink Gen2 FCC license application in August 2022 suggest that SpaceX has at least partially tempered that all-in bet on Starship. The most important modification: developing a different Starlink Gen2 satellite variant that will be optimized to fit inside Falcon 9’s much smaller payload fairing. According to SpaceX, despite the seemingly major form-factor changes required to make Gen2 fit, Starship and Falcon 9-optimized satellites will still be “technically identical.”
The implication is that the satellites launched on Falcon 9 will still offer the same performance as those launched on Starship, albeit in a different form factor. Nonetheless, the only thing SpaceX guarantees in the document is that the Falcon 9-launched Gen2 satellites won’t be more powerful than those launched on Starship, presumably preserving the applicability of existing analysis in the current Starlink Gen2 application. It’s thus possible that Falcon 9-optimized Starlink Gen2 satellites will have to sacrifice some of their performance relative to the unconstrained Starship-optimized variant.
With a usable diameter of 4.6 meters (~15 ft), Falcon 9’s payload fairing is about 50% narrower than the payload bay present on early Starship prototypes. Without a major redesign, Starlink Gen2 satellites optimized for Falcon 9 will likely need to sit vertically inside the fairing, the standard version of which stands 6.7 meters (~22 ft) tall before its conical tip begins curving inwards. Weighing about 1.25 tons (~2750 lb) and measuring 7 meters (~23 ft) long, Starlink Gen2’s design may only need a few moderate tweaks to fit on Falcon 9, but they’ll have to be stacked vertically instead of horizontally. Falcon 9’s established performance of roughly 16.5 tons (payload adapter included) to LEO means that the rocket will be limited to around 12 or 13 Gen2 satellites per launch, however, making the task somewhat easier.
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If SpaceX can squeeze that many Starlink Gen2 satellites inside of Falcon 9’s existing reusable fairing, it could still boost the efficiency (total bandwidth per launch) of each Starlink mission by ~50% relative to the same rocket carrying 50-60 Starlink V1.5 satellites. It’s no surprise, then, that SpaceX appears to be doing everything it can to begin launching Starlink Gen2 as quickly as possible, whether or not Starship is ready to help.
Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
