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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.
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.
Elon Musk
The Tesla and SpaceX merger everyone is talking about is quietly building
Tesla and SpaceX may be closer to merging than Wall Street or either company is admitting.
Elon Musk has reportedly discussed merging Tesla and SpaceX with people close to him, according to CNBC, which cited sources familiar with the conversation. Tesla employees have long expected such a transaction and the topic is openly discussed internally, according to internal sources. With SpaceX is days away from kicking off its Wall Street roadshow for what could be the largest IPO in market history, this would be the first time the company will have public market currency to execute a stock-for-stock deal with Tesla.
The financial logic for a merger would make sense. A combined SpaceX and Tesla would create a conglomerate spanning rockets, satellites, electric vehicles, AI infrastructure, and energy storage valued at roughly $3.35 trillion to $3.6 trillion based on SpaceX’s IPO target range and Tesla’s current market capitalization. The two companies are already more intertwined than most people realize. SpaceX bought $697 million worth of Tesla Megapack systems for xAI data centers and $131 million worth of Cybertrucks. Tesla invested $2 billion in xAI, which subsequently merged with SpaceX. Past transactions also include Tesla selling solar equipment and parts to SpaceX, and SpaceX helping with Cybertruck materials.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
Musk himself signaled where this was heading in November 2025 when he posted on X, “My companies are, surprisingly in some ways, trending towards convergence.” Tesla and SpaceX announced a joint semiconductor fabrication facility in Austin called Terafab on the Gigafactory Texas campus, covering two advanced chip factories, with one serving Tesla’s AI needs for vehicles and Optimus robots, the other targeting space-based data centers under SpaceX’s infrastructure vision.
Wedbush analyst Dan Ives places the probability of a merger at 80% to 90% with a target completion in the first half of 2027. The mechanics of a deal became possible the moment SpaceX filed its S-1. Legal experts said a merger likely would not spark antitrust issues but would raise concerns among shareholders in each company, with questions around which company would be the parent, how a stock swap would take place, and who determines the appropriate price. Musk holds about 20% of Tesla’s equity but controls 85.1% of SpaceX’s voting power through a super-voting share class, meaning he would largely be negotiating the terms with himself.
Not everyone is convinced the timing is imminent. Traders on Kalshi place only 33% odds that a merger will happen before May 2027. The more immediate concern for Tesla shareholders is whether the SpaceX IPO pulls capital and Musk’s attention away from Tesla before any merger consolidates the upside for both.
What is clear is that the structural groundwork is already being laid. The Terafab announcement, the xAI merger, the shared supply chain, the cross-company balance sheet transactions, and now the IPO all point in the same direction. Whether the merger follows in 2027 or later, the two companies are already operating more like divisions of a single entity than independent competitors.
Elon Musk
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
The Space Force just handed SpaceX $2.29 billion to build the military’s space internet backbone.
The U.S. Space Force awarded SpaceX a $2.29 billion contract on May 26, 2026 to build the backbone of its Space Data Network, a satellite-based communications system designed to keep American military forces connected anywhere on Earth in real time. The contract is firm-fixed-price and requires SpaceX to deliver a fully operational prototype by the end of 2027.
In plain terms, the SDN Backbone is the plumbing behind the military’s space-based internet. It functions as a low Earth orbit satellite constellation providing robust, high-capacity, and low-latency data transport for the Joint Force, connecting sensors and weapons systems continuously, globally, and securely. Think of it as a private, hardened version of Starlink built specifically for battlefield communications, one that soldiers, ships, and aircraft can rely on even in contested environments where ground-based networks have been disrupted.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The Space Force was direct about why SpaceX was selected. “The SDN Backbone leverages the best of commercial innovation and delivers a strong foundation for the SDN mission set — a huge benefit and enabler for our warfighters,” said USSF Col. Ryan Frazier.
“We aren’t trading speed for scale; we are demanding both. By using rapid prototyping and Other Transaction Authorities, we are ensuring our advanced solutions are integrated and delivered to the warfighter as fast as possible,” added USSF Lt. Col. Fry, SDN Backbone system program manager.
The SDN Backbone will work alongside the Space Development Agency’s Transport Layer, with the two systems forming a unified open architecture to provide critical data transport for current and future Department of War missions.
As Teslarati has reported, this is not SpaceX’s first Space Force contract of 2026. In April, the Space Force awarded SpaceX $178.5 million to launch missile tracking satellites, and SpaceX is already embedded in the Golden Dome missile defense software group. The $2.29 billion SDN Backbone award puts SpaceX at the center of how the American military communicates in space, a position with direct implications for its reported $1.75 trillion IPO valuation as the company heads toward a public offering as early as June 2026.
Tesla’s dedicated factory for building up to ten million Optimus units is officially under construction at Gigafactory Texas.
Drone footage released on May 27 by Giga Texas observer Joe Tegtmeyer captures the significant milestone of the first steel structure officially standing at Tesla’s new Optimus factory on the North Campus of the facility.
Phase two of land reclamation is advancing steadily, and the progress will let the new building extend nearly the full length of the main Giga Texas factory, potentially exceeding 4,000 feet, while measuring somewhere between 50 and 70 meters narrower. Extensive foundation work is proceeding as well.
Big news at the new Optimus 10m/y factory construction site today! The 1st steel structure has been erected & as expected the second phase of land reclamation is underway.
This will allow this new factory to grow to nearly the same length as the main Giga Texas factory,… pic.twitter.com/FidRLV6XpU
— Joe Tegtmeyer 🚀 🤠🛸😎 (@JoeTegtmeyer) May 27, 2026
This facility forms a central element of Tesla’s broader North Campus expansion at Giga Texas. The project will add more than 5.2 million square feet of new industrial space. It sits alongside other advanced developments, including a Terafab for next-gen AI chips. The scale reflects Tesla’s commitment to transforming humanoid robotics into a core pillar of the company’s future.
Musk has said that Optimus will be the biggest product in the world on several occasions. He believes it will be Tesla’s biggest valuation contributor.
Tesla prepares to expand Giga Texas with new Optimus production plant
Tesla plans to build about 10 million robots at the site annually once it is completed, which would be about 27,000 units each day.
The Optimus plant at Giga Texas is part of Tesla’s phased strategy for Optimus manufacturing. In an effort to start production of the robot well before the Giga Texas plant is complete, Tesla ended production of the Model S and Model X vehicles, which were built in Fremont, California, to make way for initial Optimus manufacturing efforts.
Production there will start in either July or August of this year, and early units will support internal factory tasks while the team gathers real-world data to refine processes. The Gigafactory Texas facility will house a second-gen production line. It targets high-volume output starting in Summer 2027.
Musk has repeatedly described Optimus as potentially more valuable than Tesla’s entire vehicle business. Current versions are already completing minor tasks around various facilities, while Tesla continues to refine its abilities and add new features.
Tesla’s total investment could reach several billion dollars. Significant challenges lie ahead, including the creation of an entirely new manufacturing ecosystem, the refinement of AI systems for dependable autonomy, and the development of reliable supply chains for actuators, sensors, and other components.
Nevertheless, the visible progress at Giga Texas highlights Tesla’s capacity to translate ambitious concepts into physical reality.
Tesla’s Optimus factory stands as much more than a simple expansion project, as it is quite literally the second phase of what could potentially be the biggest product ever. With construction beginning, 2027 is poised to become a transformative year for Tesla, as it evolves even further from an electric vehicle leader into a pioneer of intelligent, general-purpose machines.
The Tesla and SpaceX merger everyone is talking about is quietly building
SpaceX to become America’s Military data backbone for missiles, drones, and warfighters
