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Starlink satellites deploy their solar arrays in this official visualization. (SpaceX) Starlink satellites deploy their solar arrays in this official visualization. (SpaceX)

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SpaceX is in no rush for a Starlink IPO and that should terrify competitors

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SpaceX President Gwynne Shotwell says that the Starlink satellite internet business is in no rush to become a separate company and pursue an IPO, and that relaxed demeanor should terrify competitor constellations and ISPs like OneWeb and Comcast.

Announced in January 2015, SpaceX has been developing a massive constellation of satellites capable of delivering high-quality broadband internet anywhere on Earth for half a decade. Known as Starlink, SpaceX launched its first dedicated satellite prototypes – known as Tintin A and B – in February 2018, serving as a very successful alpha test for the myriad technologies the company would need to master to realize the constellation’s goals. 15 months later, SpaceX launched its first batch of 60 radically-redesigned Starlink satellites – packed flat to fit in an unmodified Falcon 9 payload fairing.

Less than nine months after that first ‘v0.9’ mission, SpaceX has completed another three dedicated launches and made Starlink – now some 235 operational satellites strong – the world’s largest private satellite constellation by a huge margin. Now just two days away from its fifth Starlink launch, SpaceX’s second-in-command has revealed that the company will likely split Starlink off into its own separate company, enabling an IPO without sacrificing SpaceX’s broader freedom. However, Shotwell also made it clear that SpaceX is in no rush to do so, and that fact should strike fear into the hearts of Starlink’s many potential competitors.

https://twitter.com/valleyhack/status/1225474939454541825

Bloomberg first broke the news with a snippet revealing that SpaceX COO and President Gwynne Shotwell had told a private investor event that Starlink could eventually IPO as an independent company. While undeniably important, a SpaceX source – after confirming the news – also told Reuters reporter Joey Roulette that it would be “several years” before the company might kick off the process of a Starlink IPO.

While a seemingly small piece of information at face value, the fact that SpaceX is years away from a potential Starlink IPO implies that the company is incredibly confident in where it stands today. Given that SpaceX only started ramping up its Starlink production rates and launch cadence a handful of months ago, that apparent confidence – assuming SpaceX’s respected President and COO isn’t lying to the faces of prospective investors – is no small feat.

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Thanks to that production and launch cadence ramp, SpaceX is likely in the midst of one of the most capital-straining periods its Starlink program will ever experience. As a private company, SpaceX’s balance sheets are a black box to the public, but it’s safe to say that the it’s going through – or has already gone through – a phase of “production hell” similar to what Tesla experienced when it began building Roadsters, Model S/Xs, and Model 3s.

A stack of 60 Starlink v1.0 satellites. (SpaceX)

Building satellites like cars

In less than 12 months, SpaceX has effectively gone from manufacturing zero satellites to mass-producing something like 2-4 Starlink spacecraft every single day, almost without a doubt smashing any records previously held in the industry. It’s possible that companies like Planet (now the owner of the second-largest private constellation) or Spire have built more spacecraft in a given period, but SpaceX’s satellites are at least an order of magnitude larger, on average.

Around 260 kg (570 lb) apiece, SpaceX has built and launched a total of 240 spacecraft – together weighing more than 60 metric tons (135,000 lb) – in less than nine months. Furthermore, the company not only intends to crush that average but wants (if not needs) to do so for several years without interruption.

Starlink v0.9. (SpaceX)
Starlink v1.0 Launch 1. (SpaceX)
Starlink V1 L2. (SpaceX)
Starlink V1 L3. (SpaceX)

Back in May 2019, CEO Elon Musk confidently stated that he believes SpaceX already has all the capital it needs “to build an operational [Starlink] constellation”, likely referring to at least ~1500 operational communications satellites – launches included. This is why competitors should be moderately terrified that SpaceX isn’t even privately pushing for an IPO sooner than later. Perhaps the single biggest reason modern companies pursue IPOs is to raise substantial capital – usually far more than can be practically (or quickly) raised while private when executed successfully.

A step further, “several years” should mean titanic changes for SpaceX’s Starlink constellation if everything goes as planned. In 2020, SpaceX has publicly stated that it will attempt as many as 20-24 dedicated Starlink launches, an achievement that would translate to a constellation more than 1600 satellites strong by the end of the year. SpaceX says that 24 launches (20 if the first four missions are subtracted) is enough to offer global coverage and plans to begin serving customers in the northern US and Canada as early as this summer.

An animation of SpaceX’s Starlink satellite constellation. (SpaceX – GIF by Teslarati)

As of now, SpaceX has performed three 60-satellite Starlink launches total in the last three months – two in January 2020 alone – and Starlink V1 L4 (the fourth v1.0 launch and fifth launch overall) is scheduled to lift off just two days from now on February 15th. If Musk and Shotwell are correct and SpaceX can launch at least one or two thousand satellites without raising any additional capital, the constellation – potentially reaching those numbers by early to mid-2021 – may already have hundreds of thousands of customers by the time more funding is needed. 2000 Starlink v1.0 satellites, for reference, would theoretically offer enough collective bandwidth for more than 500,000 users to simultaneously stream Netflix content in 1080p.

As of early 2019, SpaceX had raised a total of $2B in venture capital, investments, and debt. Thus, even in the unlikely event that 100% of that funding goes to Starlink, the company would ultimately have to spend $500-700M annually from 2018 to the end of 2021 to run that large pool of capital dry by the time 1000-2000 satellites are in orbit.

SpaceX’s incredibly successful program of reusable rocketry is a foundation of the company’s Starlink constellation and is one of the reasons that its apparent cost projections are low enough to defy belief. (Richard Angle)

500,000 customers paying $50-100 per month by the end of 2021 would conservatively allow Starlink to generate $300-600M in annual revenue, excluding the likely possibility of even more lucrative government or commercial contracts. In other words, if SpaceX can accumulate an average of 20,000 paying subscribers per month between now and the end of 2021, Starlink could very well become self-sustaining at its current rate of growth – or close to it – by the time SpaceX is hurting for more funding. In a worst-case scenario, it thus appears all but certain that “several years” from now, SpaceX’s Starlink program will have at least a few thousand high-performance satellites in orbit, an extensive network of ground stations, and a large swath of alpha or beta customers by the time IPO proceedings begin.

Given that all that potential infrastructure would easily be worth at least $1-2B purely from a capital investment standpoint, Starlink’s ultimate IPO valuation – under Shotwell’s patient “maybe one day” approach – could be stratospheric.

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Eric Ralph is Teslarati's senior spaceflight reporter and has been covering the industry in some capacity for almost half a decade, largely spurred in 2016 by a trip to Mexico to watch Elon Musk reveal SpaceX's plans for Mars in person. Aside from spreading interest and excitement about spaceflight far and wide, his primary goal is to cover humanity's ongoing efforts to expand beyond Earth to the Moon, Mars, and elsewhere.

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Tesla launches in India with Model Y, showing pricing will be biggest challenge

Tesla finally got its Model Y launched in India, but it will surely come at a price for consumers.

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Credit: Narendra Modi | X

Tesla has officially launched in India following years of delays, as it brought its Model Y to the market for the first time on Tuesday.

However, the launch showed that pricing is going to be its biggest challenge. The all-electric Model Y is priced significantly higher than in other major markets in which Tesla operates.

On Tuesday, Tesla’s Model Y went up for sale for 59,89,000 rupees for the Rear-Wheel Drive configuration, while the Long Range Rear-Wheel Drive was priced at 67,89,000.

This equates to $69,686 for the RWD and $78,994 for the Long Range RWD, a substantial markup compared to what these cars sell for in the United States.

Deliveries are currently scheduled for the third quarter, and it will be interesting to see how many units they can sell in the market at this price point.

The price includes tariffs and additional fees that are applied by the Indian government, which has aimed to work with foreign automakers to come to terms on lower duties that increase vehicle cost.

Tesla Model Y seen testing under wraps in India ahead of launch

There is a chance that these duties will be removed, which would create a more stable and affordable pricing model for Tesla in the future. President Trump and Indian Prime Minister Narendra Modi continue to iron out those details.

Maharashtra Chief Minister Devendra Fadnavis said to reporters outside the company’s new outlet in the region (via Reuters):

“In the future, we wish to see R&D and manufacturing done in India, and I am sure at an appropriate stage, Tesla will think about it.”

It appears to be eerily similar to the same “game of chicken” Tesla played with Indian government officials for the past few years. Tesla has always wanted to enter India, but was unable to do so due to these import duties.

India wanted Tesla to commit to building a Gigafactory in the country, but Tesla wanted to test demand first.

It seems this could be that demand test, and the duties are going to have a significant impact on what demand will actually be.

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Tesla ups Robotaxi fare price to another comical figure with service area expansion

Tesla upped its fare price for a Robotaxi ride from $4.20 to, you guessed it, $6.90.

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Credit: Tesla

Tesla has upped its fare price for the Robotaxi platform in Austin for the first time since its launch on June 22. The increase came on the same day that Tesla expanded its Service Area for the Robotaxi ride-hailing service, offering rides to a broader portion of the city.

The price is up from $4.20, a figure that many Tesla fans will find amusing, considering CEO Elon Musk has used that number, as well as ’69,’ as a light-hearted attempt at comedy over the past several years.

Musk confirmed yesterday that Tesla would up the price per ride from that $4.20 point to $6.90. Are we really surprised that is what the company decided on, as the expansion of the Service Area also took effect on Monday?

The Service Area expansion was also somewhat of a joke too, especially considering the shape of the new region where the driverless service can travel.

I wrote yesterday about how it might be funny, but in reality, it is more of a message to competitors that Tesla can expand in Austin wherever it wants at any time.

Tesla’s Robotaxi expansion wasn’t a joke, it was a warning to competitors

It was only a matter of time before the Robotaxi platform would subject riders to a higher, flat fee for a ride. This is primarily due to two reasons: the size of the access program is increasing, and, more importantly, the service area is expanding in size.

Tesla has already surpassed Waymo in Austin in terms of its service area, which is roughly five square miles larger. Waymo launched driverless rides to the public back in March, while Tesla’s just became available to a small group in June. Tesla has already expanded it, allowing new members to hail a ride from a driverless Model Y nearly every day.

The Robotaxi app is also becoming more robust as Tesla is adding new features with updates. It has already been updated on two occasions, with the most recent improvements being rolled out yesterday.

Tesla updates Robotaxi app with several big changes, including wider service area

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Tesla Model Y and Model 3 dominate U.S. EV sales despite headwinds

Tesla’s two mainstream vehicles accounted for more than 40% of all EVs sold in the United States in Q2 2025.

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Credit: Tesla Asia/X

Tesla’s Model Y and Model 3 remained the top-selling electric vehicles in the U.S. during Q2 2025, even as the broader EV market dipped 6.3% year-over-year. 

The Model Y logged 86,120 units sold, followed by the Model 3 at 48,803. This means that Tesla’s two mainstream vehicles accounted for 43% of all EVs sold in the United States during the second quarter, as per data from Cox Automotive.

Tesla leads amid tax credit uncertainty and a tough first half

Tesla’s performance in Q2 is notable given a series of hurdles earlier in the year. The company temporarily paused Model Y deliveries in Q1 as it transitioned to the production of the new Model Y, and its retail presence was hit by protests and vandalism tied to political backlash against CEO Elon Musk. The fallout carried into Q2, yet Tesla’s two mass-market vehicles still outsold the next eight EVs combined. 

Q2 marked just the third-ever YoY decline in quarterly EV sales, totaling 310,839 units. Electric vehicle sales, however, were still up 4.9% from Q1 and reached a record 607,089 units in the first half of 2025. Analysts also expect a surge in Q3 as buyers rush to qualify for federal EV tax credits before they expire on October 1, Cox Automotive noted in a post.

Legacy rivals gain ground, but Tesla holds its commanding lead

General Motors more than doubled its EV volume in the first half of 2025, selling over 78,000 units and boosting its EV market share to 12.9%. Chevrolet became the second-best-selling EV brand, pushing GM past Ford and Hyundai. Tesla, however, still retained a commanding 44.7% electric vehicle market share despite a 12% drop in in Q2 revenue, following a decline of almost 9% in Q1.

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Incentives reached record highs in Q2, averaging 14.8% of transaction prices, roughly $8,500 per vehicle. As government support winds down, the used EV market is also gaining momentum, with over 100,000 used EVs sold in Q2.

Q2 2025 Kelley Blue Book EV Sales Report by Simon Alvarez on Scribd

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