News
SpaceX’s Starlink satellite internet was tested by the US Air Force and the results are in
SpaceX President and Chief Operating Officer Gwynne Shotwell recently provided information about the company’s Starlink satellite internet constellation after a panel at the International Aeronautical Congress in Washington D.C. Shotwell spoke of a partnership with the U.S. military and just how far she believes Starlink is ahead of rival mega-constellation efforts.
While competitors are still developing very early prototypes and worrying about launch options, SpaceX has already launched 60 Starlink ‘v0.9’ satellite prototypes, 50 of which continue to successfully operate in low Earth orbit approximately half a year after launch. As part of a $29M contract awarded in late-2018, SpaceX is also working directly with the U.S. Air Force to test military applications of commercial space-based internet.
As previously reported by Teslarati, SpaceX was awarded a $29 million contract in December 2018 to collaborate with the U.S. Air Force Strategic Development Planning and Experimentation Office. Together, the organizations are testing potential military applications of Starlink satellite internet, as well as prospective constellations from other companies like Telesat.
From LEO to aircraft
The technical viability and utility of beaming high speed, low-latency broadband internet directly into the cockpits of military aircraft is being tested under a program called Global Lightning. SpaceX has engaged the initiative and was awarded $29M to pursue development and testing, far more than any other contract recipient. In October 2019, SpaceX and the USAF began publicly discussing the latest results of that effort to test Starlink’s capabilities in the realm of in-flight connectivity. As reported by SpaceNews, SpaceX COO Gwynne Shotwell revealed that Starlink had successfully demonstrated a data link to the cockpit of a military aircraft with a bandwidth of 610 megabits per second (Mbps), equivalent to a gigabyte every ~13 seconds.
Following a previous speaking engagement on Oct. 15th at the Association of the U.S. Army’s annual conference, Shotwell and U.S. Army officials provided further insight regarding military applications of Starlink. Army officials spoke about the possibility of using Starlink satellite internet and other prospective constellations to support the military’s rapidly growing demand for high-speed communications.
During the panel with U.S. Army officials, Shotwell stated that “SpaceX is new to this forum and this service,” when addressing the possibilities that SpaceX could provide for the U.S. military. While working with the military is not a new concept to SpaceX, serving as a satellite communications provider would be unlike anything the company has yet attempted.
Up next, the USAF has plans to install Starlink terminals and test connectivity with an AC-130 gunship and a KC-135 tanker aircraft.
Falcon 9 to support frequent Starlink launches – customers and rocket reusability benefit
While Shotwell acknowledged the potential of a partnership with the US. military, she also noted that Starlink is first and foremost a commercial business meant to enhance the internet experience globally and nominally provide connectivity to anyone that wants it. She further noted that Starlink would remain an “additive to [SpaceX’s] business,” implying that it will not supersede SpaceX’s current launch service business.
Intriguingly, this is utterly counter to forecasts SpaceX has provided investors over the last several years, in which Starlink – if successful – would almost certainly come to produce one or two magnitudes more income than launch services ever could. Shotwell – speaking to a variety of US military (and Air Force) officials – may have wanted to avoid sending the message that SpaceX’s launch services business – crucial to the US military – might soon be absolutely dwarfed by Starlink revenue.
Previously hinted at by CEO Elon Musk, SpaceX hopes that revenue from Starlink will enable the company to independently fund the development and mass-production of its next-generation Starship launch vehicle, eventually enabling a permanent, large-scale human presence on Mars.
Currently, SpaceX’s Starlink plans involve several distinct phases, beginning with ~1500 satellites around 500km, another ~2900 around 1000 km, and an additional ~7500 in the 300-400 km range. Finally, SpaceX recently revealed even longer-term plans for Starlink that could involve launching up to 42,000 satellites, all in the name of expanding network coverage and bandwidth – pending, of course, consumer demand. To accomplish that feat, SpaceX will have to push rocket reusability to the absolute limits, beginning with Falcon 9 boosters and fairings and ultimately moving to Starship. According to Shotwell, “(SpaceX’s) intent is to use Starlink to push the capability of those boosters and see how many missions they can do.”
SpaceX’s next Starlink mission – also the company’s next mission and first launch in more than three months – will simultaneously attempt two new rocket reusability firsts, marking the first time that SpaceX has reused a Falcon payload fairing and the first time a single Falcon 9 booster has launched four times. Starlink-1 is scheduled to lift off no earlier than 9:55 am ET (14:55 UTC), November 11th.
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Tesla CEO Elon Musk posted a photo of himself standing with the Optimus production team inside Tesla’s Fremont factory, arms crossed amid workers in hard hats and safety vests. The image captures a pivotal industrial shift: the same facility space once dedicated to building Tesla’s flagship Model S sedan and Model X SUV is now home to the company’s humanoid robot manufacturing line.
Walking the Optimus production line in Fremont pic.twitter.com/ABS0tuRibW
— Elon Musk (@elonmusk) July 1, 2026
Tesla’s Fremont Factory, acquired in 2010 from the former NUMMI joint venture between Toyota and GM, has been the company’s original U.S. manufacturing hub since Model S production began in 2012.
The Model X followed soon thereafter. These premium vehicles offered lower annual volumes, recently around 30,000 combined, compared to the high-volume Model 3 and Model Y lines that continue around the site. Over their combined run, the S and X accounted for roughly 610,000 units.
In late January 2026, during Tesla’s Q4 2025 earnings call, Elon Musk announced the end of Model S and Model X production in Q2 2026. The final vehicles rolled off the line in early May. Rather than retooling for another vehicle, Tesla chose to convert the dedicated S/X assembly area into a dedicated Optimus Gen 3 production line.
Model 3 and Y manufacturing remains unaffected. Tesla’s official Fremont Factory page now lists Optimus alongside the 3 and Y as core products.
The conversion was executed with remarkable speed. After production stopped, crews dismantled the existing vehicle line and installed entirely new modular equipment—including lines sourced from Germany and dozens of sub-lines for actuators, batteries, and other components—in roughly four months.
Musk described the timeline as “insanely fast,” noting it would be unprecedented for any other manufacturer. Initial Optimus output is expected to ramp slowly due to the robot’s roughly 10,000 unique parts and the brand-new production processes involved. The Fremont line targets an eventual capacity of 1 million Optimus units per year.
Tesla isn’t joking about building Optimus at an industrial scale: Here we go
Optimus Development Timeline
- August 19, 2021: Optimus (then called Tesla Bot) formally announced at Tesla’s first AI Day. A concept video showed a person in a suit demonstrating the vision for a general-purpose humanoid capable of dangerous, repetitive, or boring tasks using the same AI architecture as Full Self-Driving.
- 2022: Early prototypes displayed. At the second AI Day in September, semi-functional units demonstrated walking across a stage and basic arm movements
- 2023: September videos showed improved capabilities, including sorting colored blocks, precise limb awareness, and holding a Yoda pose.
- 2024-early 2025: Factory integration videos showed Optimus navigating workspaces and handling objects like battery cells.
- January 2026: Gen 3 mass-production activities began at Fremont, with reports of over 1,000 Gen 3 units already operating inside the factory for real-world learning and AI training
- April 2026: Musk confirms Optimus production on converted Fremont line would begin in late July or August 2026. The Gen 3 reveal, originally eyed for Q1, was pushed closer to production start. A second, much larger Optimus factory at Giga Texas is under construction, with volume production targeted for Summer 2027 and long-term capacity of 10 million units annually
- July 1, 2026: Musk’s on-site visit and team photo confirm the Optimus line is operational and the transition is actively progressing
Tesla positions Optimus as potentially its largest project ever, leveraging vertical integration, AI expertise, and car-like manufacturing know-how to scale humanoid robots first for its own factories and later for broader industrial and consumer use.
The Fremont conversion serves as a critical proving ground for this ambitious new chapter in Tesla’s already-rich history.
Investor's Corner
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
Tesla short seller Michael Burry, the subject of the film “The Big Short,” where he was portrayed by Steve Carell, has revealed he has opened a new bet against the stock.
In a new update to his Substack newsletter in a post titled “Trading Post June 30, 2026,” Burry revealed a new set of bets against Tesla, Caterpillar, NVIDIA, Applied Materials Inc., and the iShares Semiconductor ETF.
In regard to Tesla, Burry wrote:
“And finally I shorted Tesla at 416.22. Happy it jumped back to this level.”
This means Burry likely opened his new short position after the company’s recent rally on Wall Street, which saw Tesla shares sink in mid-May, only to recover to well over the $400 mark. Currently, shares trade at around $427.
The company saw a big Tuesday as shares climbed considerably, over 10 percent. The size of the Tesla short was not provided, nor did Burry give any information on the position’s structure, the number of shares, dollar value, or whether options were used in the short.
The Tesla and SpaceX merger everyone is talking about is quietly building
Over the years, Burry has been one of the more vocal critics of Tesla, calling its share price “media inflated,” and saying it was “ridiculously overvalued” as recently as December.
The company has largely transitioned away from being known as an automotive company and instead is much more widely regarded as an AI play, mostly due to its Full Self-Driving efforts, Optimus robot development, and data collection related to both.
This has not pulled those skeptics away from being vocal about their distaste for how Tesla is valued, but there’s no denying that the company is a global force in many things, including sustainable energy, automotive, and AI.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla Optimus project fires up as Musk sees production line progress
Tesla gets its latest short from Michael Burry: ‘Happy it jumped back to this level’
