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SpaceX’s Starlink satellites “happy and healthy” as Elon Musk fires managers and VP
Reuters is reporting that SpaceX’s Starlink internet satellite constellation project experienced significant organizational upheaval earlier this year, triggered by fundamental disagreements between CEO Elon Musk and executives overseeing Starlink as to how exactly SpaceX should approach the complex system’s development.
Despite the report’s primary focus on reorganization and Musk’s decision to simply fire 5+ key executives, SpaceX employees that spoke with Reuters were of the opinion that the two demo satellites – named Tintin A and B – are operating nominally in orbit more than half a year after launch.
The 2 test sats launched in Feb, Tintin A and B, seem to be healthy. "We’re talking with them every time they pass a ground station, dozens of times a day," one employee said. In the first week they streamed "4k YouTube and played ‘Counter-Strike: GO’ from Hawthorne to Redmond."
— Joey Roulette (@joroulette) October 31, 2018
Musk apparently believed that Starlink’s development timeline ought to be far shorter than certain senior executives overseeing the program were planning for. As a result of continuing success with the first two prototype satellites that launched in March 2018, a SpaceX engineer paraphrased Musk as being of the opinion that Starlink “can do the job with cheaper and simpler satellites, sooner.”
Rajeev Badyal, Vice President of SpaceX’s satellite program before being fired by Musk in June 2018, apparently wanted another three full iterations of prototype satellites to be launched and tested prior to beginning serious mass-production and launching the first real batch of Starlink satellites. While his extremely cautious approach may have had undeniable long-term benefits, it would also be a major hindrance in a field now rife with competitors like Telesat, OneWeb, LeoSat, and more, all eager to be first to offer internet services from low Earth orbit (LEO).
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- SpaceX’s first two Starlink prototype satellites are pictured here before their inaugural launch, showing off a thoroughly utilitarian bus and several advanced components. (SpaceX)
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- One of the first two prototype Starlink satellites separates from Falcon 9’s upper stage, February 2018. (SpaceX)
Prior to joining SpaceX in 2014, Badyal – like dozens of others now working on SpaceX’s Starlink constellation – worked at Microsoft for almost two decades, developing the consumer electronics and software company’s hardware programs (Zune, Xbox, Surface, etc.). In retrospect, it may not come as a huge surprise that a senior hardware development manager at Microsoft might be moderately risk-averse or at least methodical – while Surface and other more modern hardware programs have more functional iterative life cycles (usually annual), Xbox infamously spent nearly seven years between the launch of the Xbox 360 and Xbox One.
On the ground hardware side of Starlink development, user terminals, ground terminals, and other high-volume networking equipment could certainly benefit from someone like Badyal’s extensive experience developing high-volume consumer electronics like Xbox, but the Starlink satellites themselves are a different story. As a technology essentially without precedent, it could ultimately be almost anachronistically expensive to ‘refine’ the design of constellations of hundreds or thousands of high-bandwidth internet satellites before ever actually building and operating such a system.
A clash of approaches – Musk vs. Silicon Valley
What Musk instead seems to prefer – as demonstrated through his strategic direction of Tesla and SpaceX – is an approach where hardware development projects explicitly avoid striving for perfection with the first general iteration of a new system. Tesla did not spend years prototyping and performing limited tests in secret before building Model 3 as their first car ever – high-volume desirable electric vehicles simply did not exist. With SpaceX, Musk chose to explicitly develop a very small operational rocket – Falcon 1 – rather than very tediously attempting to go from scratch to Falcon 9 or BFR.
For Starlink, a Musk-style development program would fast-track a bare-minimum baseline for the satellite constellation and its ground systems, mass-producing and launching hardware that would inevitably be lacking in many ways but would still be able to act as a proving ground for the broader concepts at stake. One step further, the FCC’s Starlink constellation grant depends on an odd but unwavering requirement that SpaceX (or any other prospective LEO constellation-operator) launch at least 50% of all of any planned constellation within six years of receiving a license.
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- SpaceX’s first Starlink prototypes launched in late February aboard a flight-proven Falcon 9 booster. (Pauline Acalin)
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- Falcon 9 Block 5 will be absolutely critical to the success (and even the basic completion) of Starlink. (Tom Cross)
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- B1048 returns to port on drone ship JRTI after its successful July 2019 launch debut. (Pauline Acalin)
For SpaceX, that means that the basic ability to commercially operate Starlink is fundamentally at risk unless the company can somehow launch a minimum of 2213 (and up to ~5950) Starlink satellites between 2018 and 2024, an almost unfathomable challenge. Assuming ~500kg per satellite and perhaps 20 satellites per Falcon 9 launch, completing 50% of Starlink by 2024 would demand – without interruption – a minimum of one launch every two weeks for five years, mid-2019 to mid-2024. As such, every month spent prototyping and refining can essentially be viewed as a month where SpaceX didn’t launch dozens of Starlink satellites in pursuit of initial operational capabilities.
The news coming from Reuters’ reporting is ultimately a very positive look at Starlink, aside from Musk’s characteristically brusque and uncompromising approach to program management and leadership. Employees spoke proudly of the operational health and overall success of the two Tintin satellites already on orbit, noting that “they’re happy and healthy [and functioning as intended], and we’re talking with them [dozens of times a day] every time they pass a ground station”. Contrary to tenuous evidence to that suggested one of the two satellites had suffered an anomaly, preventing it from operating its electric thrusters, it appears that both satellites are doing just fine.
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- SpaceX is already fairly experienced with launching multi-satellite missions and building custom payload adapters. (NASA)
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- During a normal Iridium NEXT launch, two groups of five satellites are stacked on top of each other. Here, the top stack was replaced by NASA/DLR’s GRACE-FO spacecraft. (NASA)
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- A spectacular view of Iridium NEXT satellites during orbital deployment. Starlink deployment will be even more of a spectacle. (SpaceX)
Up next for Starlink is the launch of a second batch of demonstration satellites, expected to occur “in short order” according to an official SpaceX comment on the matter.
“Given the success of our recent Starlink demonstration satellites, we have incorporated lessons learned and re-organized to allow for the next design iteration to be flown in short order.” – SpaceX spokesperson Eva Behrend
Musk’s ultimate hope with this reorganization is to push Starlink to begin operational satellite launches as early as mid-2019, an ambitious goal to say the least. Understandably, the intent with such an expedited schedule would be to continuously modify, update, and improve Starlink satellite, terminal, and network designs at the same time as they are being built and operated. Much like SpaceX and Tesla, this helps to ensure that the ultimate result of development is a rapid initial product offering eventually followed by a highly-optimized ‘finished’ product.
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Tesla shared a striking video showcasing the decommissioning of the original Model S and Model X assembly line at its Fremont Factory in Northern California. Completed in just 46 days, the teardown involved heavy machinery dismantling concrete pits, removing robotic arms and conveyors, and clearing the space for new production.
The post, captioned “End of an era,” captured both the end of a historic chapter and Tesla’s aggressive pivot toward its next major initiative, Optimus.
End of an era: Decommissioning the original Model S & X assembly line in just 46 days pic.twitter.com/kGEdfhl62h
— Tesla Manufacturing (@gigafactories) July 10, 2026
The decision to retire the Model S and Model X originated during Tesla’s Q4 2025 Earnings Call in late January 2026. CEO Elon Musk announced that production of the company’s flagship sedan and SUV would wind down by the end of Q2 2026, describing it as bringing the programs to an “honorable discharge.”
Custom orders ceased around early April 2026, with the final vehicles rolling off the line in early May. A special signature delivery ceremony on May 20 marked the emotional close for these vehicles, which had defined Tesla’s early success and luxury EV segment since the Model S launch in 2012.
The primary reason for tearing down the lines was to repurpose the valuable factory floor space for high-volume production of Tesla’s Optimus humanoid robot. Musk had indicated on Earnings Calls that the Fremont S/X line would be replaced by a dedicated Optimus manufacturing line targeting a capacity of one million units per year.
This move aligns with Tesla’s broader strategic shift from traditional vehicle manufacturing toward robotics and artificial intelligence, leveraging the company’s expertise in autonomy, AI training, and high-volume production.
Optimus, Tesla’s general-purpose humanoid robot, is designed to perform repetitive or dangerous tasks in factories, warehouses, and eventually homes. Powered by Tesla’s AI and Neural Networks, it aims to be a versatile, affordable platform. Production of Optimus Gen 3 is already underway in limited form at Fremont, with full-scale output on the converted line expected to begin in late July or August.
Tesla is targeting rapid scaling, with internal ambitions pointing toward tens or even hundreds of thousands of units annually by the end of 2026.
Longer-term, Tesla is constructing a much larger second-generation Optimus facility at Giga Texas, with potential capacity reaching millions of units per year. The company views Optimus as a transformative product that could eventually surpass its automotive business in scale and value, enabling widespread deployment of useful robots across industries. CEO Elon Musk has even predicted it would be the most popular product of all-time.
As one era closes at Fremont, another is rapidly taking shape.
Elon Musk posted a candid admission on his social media platform X on June 9, declaring that he had been “clearly wrong” about Anthropic. The statement marked a notable reversal from his earlier skepticism toward the AI company.
In September, Musk had written, “Winning was never in the set of possible outcomes for Anthropic,” reflecting his view at the time that the startup had lacked the foundation or even the trajectory to succeed in what is an incredibly intense race for advanced artificial intelligence.
Musk’s latest post came amid discussion of Anthropic’s reliance on external compute resources. He praised the company’s progress, stating that Anthropic is “obviously currently the leader in AI” and that “no company has released a model as good as Mythos/Fable,” with expectations of a strong follow-up in Mythos 2.
The tone shifted dramatically from dismissal to acknowledgement of superior performance.
I was clearly wrong about Anthropic. They are obviously currently the leader in AI. No company has released a model as good as Mythos/Fable and they will undoubtedly have Mythos 2 ready soon.
And I would never cut them off in a way that hurt them badly, even as a competitor.…
— Elon Musk (@elonmusk) July 9, 2026
The context of Musk’s comments added significance. Anthropic has been operating under a recent compute deal with SpaceXAI, Musk’s AI infrastructure-focused venture. The pair entered a short-term GPU lease agreement initiated in May, providing Anthropic access to critical computing power for training and deploying its frontier models.
SpaceXAI signs agreement with Anthropic for massive AI supercomputer access
Some observers had speculated that Musk could leverage this dependency to disadvantage a rival. Musk directly addressed the possibility, writing, “I would never cut them off in a way that hurt them badly, even as a competitor. That’s not my style.”
To support his commitment to ethical competition, Musk referenced concrete examples from his other companies. Tesla famously open-sourced its entire portfolio of electric vehicle patents in 2014. The move was designed to accelerate the global adoption of sustainable transportation technology rather than protect proprietary advantages.
Tesla also made its Supercharger network available to competing electric vehicle manufacturers, transforming what could have remained an exclusive charging ecosystem into a shared infrastructure that benefits the broader industry and reduces barriers for EV adoption.
Musk further pointed to SpaceX’s practices, noting that the company launches satellites for competing commercial systems “with no increase in price or use of unfair terms.” He extended the principle to his social platform, observing that “even my worst enemies attack me on this platform,” underscoring preference for open discourse over retaliation.
These examples have illustrated Musk’s long-standing philosophy that long-term technological progress is best served by open competition and infrastructure sharing rather than leveraging market power to stifle rivals. In the fast-evolving AI sector, where compute resources and model capabilities determine leadership, Musk’s stance suggests a willingness to compete on innovation and performance alone.
Musk’s admission arrives as SpaceXAI itself advances its own frontier models while maintaining business relationships across the ecosystem. By publicly correcting his earlier assessment and reaffirming principles of fair play, Musk highlights a model of competition that prioritizes advancement of the field over short-term tactical advantages.
A Tesla analyst believes the company’s Full Self-Driving suite is close to an “inflection point,” where people will finally realize that it is more than what it appears, similar to how many view the iPhone.
Pierre Ferragu, an analyst who has covered Tesla for many years at New Street Research, says the Full Self-Driving suite is one piece of evidence supporting the view that a Tesla is more than a car. He compared it to the iPhone and noted that the high price tag seemed like a lot for a phone early on. Then people realized the iPhone was more than just something you make calls with. It made their lives simpler.
🚨 Analyst @p_ferragu says Tesla Full Self-Driving is at an “inflection point” in a recent commentary:
“A Tesla is not a car, the same way an iPhone was not a phone. As a tool that gets you to work peacefully every morning, it is not expensive. Give us 2 more quarters to see… pic.twitter.com/tm6xFrjVPV
— TESLARATI (@Teslarati) July 10, 2026
Suddenly, that price tag was justified.
Tesla offers several models under the average transaction price for a new vehicle, which was above $49,000, according to Kelley Blue Book. However, that does not take into account that many people can still not afford a $35,000 vehicle. Ferragu offers his thoughts:
“Remember when the addressable market of the iPhone was 10 million units? Then people realized how good it was, and now, nearly 250m are sold every year.
A similar evolution for Tesla is still on the table. A Tesla is not a car, the same way an iPhone was not a phone.
A model 3 at $35k + $100 per month is too expensive for most, but only as a car, the same way a $600 iPhone was too expensive for most, until most realized it was much more than a phone.
As a tool that gets you to work peacefully every morning, it is not expensive.”
This point is valid, especially considering the iPhone’s impact on the cell phone market. There are still a handful of players, but most people you know have an iPhone. The iPhone ties into Apple’s other ecosystem of products.
This is how Tesla plans to infiltrate the automotive market, and once the company offers a fully autonomous suite, or something that can allow for unsupervised self-driving, more and more people will flock to Tesla.
Ferragu believes Tesla needs two additional quarters of development before things will truly change. He didn’t elaborate on what will happen in two quarters, but he said it will give us all time to “see where this is heading.”
It is really quite interesting to see people’s reactions when they find out what a Tesla is capable of. Full Self-Driving is a great tool for taking stress out of travel; I use it daily, and it has made it really difficult to consider taking any other car on a drive of practically any length.
To me, it is really hard to believe that people will not at least seriously consider a Tesla as their next car if they experience Full Self-Driving. This is a major point for those who argue that Tesla should advertise in some way.
Tesla shows rapid teardown of Model S and X lines, paving the way for Optimus at Fremont
Elon Musk admits he was ‘clearly wrong’ about Anthropic
