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A truly picturesque live view of the Iridium NEXT Mission 3 satellite deployment. Four sats are visible in an arc on the left. Starlink will be denser and smaller, but will deploy similarly. (SpaceX) A truly picturesque live view of the Iridium NEXT Mission 3 satellite deployment. Four sats are visible in an arc on the left. Starlink will be denser and smaller, but will deploy similarly. (SpaceX)

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SpaceX’s Starlink satellites “happy and healthy” as Elon Musk fires managers and VP

Starlink satellites will be denser and smaller, but they will deploy much like these Iridium satellites. (SpaceX)

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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.

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.”

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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).

 

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.

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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.

 

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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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.


For prompt updates, on-the-ground perspectives, and unique glimpses of SpaceX’s rocket recovery fleet check out our brand new LaunchPad and LandingZone newsletters!

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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 hints it could see ‘a few more vehicles’ released soon

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

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Tesla Board Chair Robyn Denholm hinted the company could see “a few more vehicles” coming out and being released soon, although there is no indication of what could be on the way based on her comments.

However, Tesla has hinted toward several potential releases in the coming years, as other executives, including Chief Designer Franz von Holzhausen, have talked briefly about what could be on the way.

Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”

It was a vague and almost cryptic sentence, as, in all honesty, it was not completely clear whether she was talking about recent releases that are just making their way to market, like the Model 3 and Model Y “Standard,” or new vehicles altogether.

Nevertheless, it’s worth dissecting.

Tesla “Standard” Models

On October 7, Tesla launched the Standard Model 3 and Model Y, stripped-down versions of their now “Premium” siblings. The Standard trims lack premium features like leather seats, a rear touchscreen, and a glass roof, among other features.

Tesla begins deliveries of its affordable Model Y Standard

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These cars are just starting to be delivered for the first time, so it is possible that Denholm was referring to these cars.

Potential Model 2 Hint?

There has always been a looming vehicle model that many Tesla fans and owners have been intrigued by: the Model 2.

This car was hinted at being the $25,000 model that Tesla was rumored to be developing, and many thought that was the vehicle that would be released earlier this month, not the Standard Model 3 and Model Y.

Instead, the Model 2 could be something that would enable Tesla to reach an entirely new consumer base, including those who are not able to swing the payment for the company’s more premium offerings.

It seems Tesla will have to launch some sort of extremely affordable model in the future, and with the Cybercab being slotted at that rough price point, it would not be out of the question for it to be in the realm of possibility for future releases.

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It’s worth noting, however, that it is probably unlikely this will happen. Tesla is so deadset focused on autonomy, it seems Cybercab would take extreme precedence over the unconfirmed “Model 2.”

Cybertruck-inspired SUV

Tesla fans have been begging the company to develop a full-size SUV that would compete with the Ford Expedition or Chevrolet Tahoe, but the company has not given any indication that this would be something it would build.

Nevertheless, there was a very subtle hint in a recent promotional clip that showed a Cyber SUV mock-up placed strategically next to a clay model of a Model 3:

Tesla appears to be mulling a Cyber SUV design

The Model X is simply not what people want when it comes to an SUV, as it does not have the seating capacity and cargo space that many need with a full-sized SUV.

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This issue, in particular, has been one that has been extremely relevant to the company’s future lineup as consumers have shown they would be interested in a Tesla vehicle that fit this description.

Additionally, von Holzhausen said in September that a Cyber SUV or a smaller electric pickup with a more traditional design is “definitely things we’ve considered…We’re working on so many innovative and fun things.”

Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck

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Investor's Corner

Tesla enters new stability phase, firm upgrades and adjusts outlook

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

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Credit: Tesla China

Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.

Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.

While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.

The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.

Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings

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Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.

They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.

Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.

Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.

Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.

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Ives said in a note on October 2:

“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”

Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.

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Elon Musk

Tesla preps for a harsh potential reality if Musk comp vote doesn’t go to plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

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tesla cybertruck elon musk
Tesla CEO Elon Musk unveils futuristic Cybertruck in Los Angeles, Nov. 21, 2019 (Photo: Teslarati)

Tesla could be forced to look for a new CEO in the coming months, as a crucial November 6 Shareholder Meeting vote will determine whether Elon Musk will stick around.

A major vote is coming up at the 2025 Tesla Shareholder Meeting, as investors will determine whether Musk should be given a new compensation plan that would award him up to $1 trillion and more than one-fourth of the total voting power within the company.

Tesla board chair reiterates widely unmentioned point of Musk comp plan

A successful vote for Tesla would see the compensation package get approved. But there is always the possibility of a rejection, which would likely see Musk leave the company.

“My fundamental concern with regard to how much voting control I have at Tesla is if I go ahead and build this enormous robot army, can I just be ousted at some point in the future? That’s my biggest concern,” Musk said at last week’s Earnings Call. “That’s what it comes down to in a nutshell. I don’t feel comfortable wielding that robot army if I don’t have at least a strong influence.”

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Tesla Board of Directors Head Robyn Denholm has been on somewhat of a PR tour over the past few days, answering questions about the compensation plan, which is among the biggest issues currently for the company.

Denholm told Bloomberg yesterday that Tesla investors need to be prepared for Musk to abandon ship if the package is not approved, which brings on a new question: Who would take over the CEO role?

That is a question Denholm also answered yesterday, bringing forth the conclusion that Tesla would not look for an outside hire if Musk were to leave the company. Instead, it would promote someone internally.

The way it was reported by Bloomberg and Reuters seems to make it seem as if Tesla is preparing for the worst, as it states the company “is looking at internal CEO candidates,” not preparing to do so.

Of the executives at Tesla who immediately come to mind as ideal candidates for a potential takeover should Musk leave, Tesla China President Tom Zhu and Head of AI Ashok Elluswamy both come to mind. Zhu has monumental executive experience already, as he was appointed to the role of Senior VP of Automotive back in December 2022.

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He then returned to China in 2024.

It seems Tesla wants to align its future, with or without Musk, on the same path that it is currently on, and internal candidates might have a better idea of what that looks like and truly means.

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