News
SpaceX filing shows plans to bring Starlink to U.S. school buses
SpaceX plans to bring Starlink internet to students on school buses in the U.S., according to a new filing with the Federal Communications Commission.
The space exploration company is collaborating with several school districts for pilot projects in rural areas of the country to support students who have to travel on long bus routes. This gives students internet access while on those long rides.
SpaceX is focusing on school bus routes that are over an hour long each way and are also predominantly inaccessible to other mobile broadband services. In a letter addressed to FCC Secretary Marlene Dortch, SpaceX expressed its support for the agency’s efforts to fund the Schools and Libraries Universal Service Support Mechanism (E-Rate program) connecting millions of students who don’t have access to broadband internet.
“SpaceX is committed to ensuring access to high-speed, low-latency broadband service to benefit American students as quickly as possible, not only at home but on their way to and from school. In fact, SpaceX has prioritized connecting otherwise unserved schools and libraries in the most remote parts of the country, including on Tribal lands.”
“SpaceX therefore strongly agrees with Chairwoman Rosenworcel that providing Wi-Fi on school buses is critical to bridging the Homework Gap and that the provision of such services should be eligible for E-Rate support.”
“The Commission should quickly act to expand the scope of the E-Rate program by adopting the Chairwoman’s draft Declaratory Ruling to ensure equitable access to high-speed broadband services on school buses in addition to the already eligible schools and libraries.”
This lines up with what Elon Musk said over the summer about Starlink, education, and access to the internet. When asked about solutions to poverty, he said,”Literacy and access to internet, I think, are fundamentally helpful.”
-
According to the Borgen Project, 60 million people could be alleviated from poverty if they received two or more years of education or completed secondary school. DoSomething.org notes that over 30 million children are growing up in poverty and that there is only one book for every 300 children in low-income communities.
In addition, a higher percentage of young adults without a high school diploma live in poverty, and 40% of children living in poverty aren’t prepared for primary schooling.
“So I think those things are helpful. Generally, education, obviously, is good. These days you can learn almost anything online. MIT, for example, has all of their lectures online and a number of other universities do. If you wanted to, you could learn almost anything for a very low cost just using a simple phone or an old tablet–a router box basically,” Elon Musk said.
“You’ve got access to all the world’s information. I think that this fact is really underappreciated and it’s something we should be I think pretty excited and optimistic about or feel good about which is that information before the internet was very limited.”
“If you wanted to learn a skill or trade or learn something, you would have to go to a school and you’d have to get the specific books or you’d have to go to a library in that library wouldn’t necessarily have all the books that you’d want. Or maybe there isn’t a library or there might not be a library near where you live.”
“But with the internet, you’ve got instant access to basically all the world’s information. So information equality is really incredible compared to where it used to be.”
In the letter to the FCC Secretary, SpaceX also pointed out that low-income students are affected disproportionately.
-
“According to a Pew Research Center Study, roughly one-third (35%) of households with children ages 6 to 17 and an annual income below $30,000 a year do not have a high-speed internet connection at home.”
“And many students who need the most support live miles from school, with lengthy commutes but no connectivity. Subsidized funding such as the E-Rate program should address digital equity and enable increased educational opportunities for students across the United States by ensuring access to high-speed internet at home and on the way to school.”
Your feedback is important. If you have any comments, or concerns, or see a typo, you can email me at johnna@teslarati.com. You can also reach me on Twitter at @JohnnaCrider1.
Teslarati is now on TikTok. Follow us for interactive news & more.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
-
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
