News
SpaceX’s Starlink eyed by US military as co. raises $500-750M for development
In a reasonably predictable turn of events, SpaceX has been awarded a healthy $28.7M contract to study, develop, and test possible military applications of its prospective Starlink internet satellite constellation.
Previously reported by Teslarati in August 2018, FCC applications related to Starlink revealed that SpaceX had plans to develop and test Starlink interconnectivity with conformal antenna arrays installed on aircraft, all but directly pointing to military involvement with a reference to the need for aerial maneuvers “[representative] of a high-performance aircraft.”
The Air Force just gave @SpaceX $28.7 million for Starlink experimentation. https://t.co/fr2bBHJkDN
— Eric Berger (@SciGuySpace) December 21, 2018
Around the same time as those FCC documents surfaced, the US Air Force Research Laboratory (AFRL) spoke with AviationWeek about plans to experiment with the potential capabilities offered by a flurry of proposed low Earth orbit (LEO) internet satellite constellations, including the likes of SpaceX’s Starlink, OneWeb, a Telesat network, and others. While no specific companies were fingered in AFRL’s public statements, it was far too convenient to be a coincidence. Four months later, the below transaction was published in the Department of Defense’s running list of new contract awards:
“[SpaceX], Hawthorne, California, has been awarded a $28,713,994 competitive, firm-fixed-price … agreement for experimentation … in the areas of establishing connectivity [and] operational experimentation … [and] will include connectivity demonstrations to Air Force ground sites and aircraft for experimental purposes. For the proposed Phase 2, the awardee proposes to perform experiments [with] early versions of a commercial space-to-space data relay service and mobile connectivity directly from space to aircraft.” – Department of Defense, FBO FA8650-17-S-9300
Those dots were fairly easy to connect earlier this year, but this agreement confirms the apparent arrangement with certainty. Almost three months after SpaceX could have received its initial funding, it’s possible that the company has already begun basic testing along the described lines with the two prototype Starlink satellites currently in orbit, although no FCC or FAA filings (that I am aware of) have suggested that those tests are ongoing. SpaceX may be waiting for the launch of a second generation of Starlink prototype satellites to begin seriously putting its antenna and communications technologies through their mid-air paces.
SpaceX seeks approval for Starlink internet tests on high-performance govt. planes https://t.co/FSUFgFXOQW
— TESLARATI (@Teslarati) August 15, 2018
Early answers to the biggest question
At this point in time, the viability and potential utility of Starlink and other large LEO constellations are well established. What has not been established, however, is how exactly any of the proposed constellations – especially Starlink – can go from paper to orbit. In other words, the reasonable question to ask of any company pursuing such an endeavor is how they plan to fund the acquisition of capital-intensive manufacturing infrastructure and launch services.
Ultimately, SpaceX will receive $19.1M of the full $28.7M sum from the DoD in FY2019 (Oct 1, 2018 to Sept 30, 2019). This absolutely dwarfs all other contracts awarded thus far under the AFRL’s Defense Experimentation Using Commercial Space Internet (DEUCSI) program, which began in August 2017 and has since awarded $2.5M and $5.6M contracts to Iridium and L3, respectively. In the grand scheme of things, ~$30M is a pittance in the face of the extensive investments SpaceX needs to make if it hopes to mass-produce high-performance satellites at a truly unprecedented scale.
- An unofficial analysis of SpaceX’s first ~1600 Starlink satellites. (Mark Handley)
- One of the first two prototype Starlink satellites separates from Falcon 9’s upper stage, February 2018. (SpaceX)
- SpaceX’s Starlink satellite constellation efforts could provide the company with valuable experience that can be applied around Mars. (unofficial logo by Eric Ralph)
This is where a duo of major investment and fundraising developments come into play. In the last several months, word has gotten out that SpaceX secured a respectable $250M loan through the sale of debt, and more recently wrapped up an equity investment round to the tune of $500M, playing off of long-time investors with a demonstrated interest in belief in the company’s long-term vision. For unknown reasons, SpaceX had originally looked into raising the full $750M through a debt-equity loan, but – despite reports that its market was very healthy – soon cut the offering to $500M and eventually $250M, which it ultimately secured in November. Combined with a traditional $500M equity-investment uncovered earlier this month, SpaceX appears to have nearly completed fundraising of more than $750M in the second half of 2018 alone.
.@WSJ reports that @SpaceX is raising $500M to get its #Starlink broadband satellite service off the ground: https://t.co/dQTKE10NpB H/T @RolfeWinkler pic.twitter.com/ufx02xNWLv
— Alan Boyle 👽 (@b0yle) December 18, 2018
Put a different way, SpaceX has very rapidly gotten very serious about doubling down on Starlink. According to the Wall Street Journal, who originally broke the news of a new $500M equity round, that funding is to be predominately focused on getting Starlink up and running as a serious venture capable of mass-producing satellites. According to a recent Reuters analysis of the Starlink program, CEO Elon Musk challenged the company to begin dedicated launches of operational Starlink satellites as early as June 2019, and the company also plans to launch another round of improved (Gen 2) satellite prototypes early next year.
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Elon Musk
Tesla owners keep coming back for more
Tesla has taken home the “Overall Loyalty to Make” award from S&P Global Mobility for the fourth consecutive year, reinforcing Tesla owners’ willingness to come back. The 2025 awards are based on S&P Global Mobility’s analysis of 13.6 million new retail vehicle registrations in the U.S. from October 2024 through September 2025. The complete list of 2025 winners includes General Motors for Overall Loyalty to Manufacturer, Tesla for Overall Loyalty to Make, Chevrolet Equinox for Overall Loyalty to Model, Mini for Most Improved Make Loyalty, Subaru for Overall Loyalty to Dealer, and Tesla again for both Ethnic Market Loyalty to Make and Highest Conquest Percentage.
Tesla’s streak in this category started in 2022, and the brand has now won the Highest Conquest Percentage award for six straight years, meaning it keeps pulling buyers away from other brands at a rate no competitor has matched. Tesla’s retention among Asian households reached 63.6% and among Hispanic households 61.9%, rates that significantly outpace national averages for those groups. That breadth of appeal across demographics adds a layer of significance to a win that some might dismiss as routine.
The timing matters too. After several consecutive quarters of decline, Tesla’s share of U.S. EV sales jumped to 59% in Q4 2025. That rebound, arriving just as competitors were flooding the market with new models and incentives, suggests Tesla’s loyalty numbers are not simply the result of limited alternatives. Buyers are still choosing it when they have plenty of other options.
What keeps Tesla owners coming back has a lot to do with the and convenience of charging. The Supercharger network is the most straightforward example. With over 65,000 Superchargers globally, it remains the largest and most reliable fast-charging network in the world, and owners who have built their routines around it face a real practical cost when considering a switch. Competitors have made progress, but the consistency, speed, and availability of Tesla’s network is still the benchmark the rest of the industry is chasing. Then there is the software side. Tesla has built a model where the car you own today is functionally different from the car you bought two years ago, through over-the-air updates that add continuous game-changing improvements such as Full Self-Driving that has moved from a driver-assist feature to an increasingly capable autonomous system. For many Tesla owners, leaving the brand means starting over with a car that will not get meaningfully better over time, and that is a trade-off fewer and fewer are willing to make.
News
Tesla Robotaxi service in Austin achieves monumental new accomplishment
Tesla Robotaxi services in Austin have been operating since last Summer, but Tesla has admittedly been delayed in its expansion of the geofence, fleet size, and other details in a bid to prioritize safety as new technology rolls out.
But those barriers are being broken with new guardrails being removed from the program.
Tesla has achieved a significant advancement in its autonomous ride-hailing program. As of May 4, the Robotaxi fleet in Austin, Texas, has begun operating unsupervised during evening hours for the first time. This expansion moves beyond previous limitations that restricted unsupervised service to daylight hours, typically ending in mid-afternoon.
Tesla Robotaxi in Austin is operating unsupervised in the evenings for the first time today.
Previously in Austin, unsupervised operation ended mid-afternoon
— Robotaxi Tracker (@RtaxiTracker) May 4, 2026
The change brings Austin in line with operations in Dallas and Houston. Those cities have supported evening unsupervised runs since their initial launches in April, and both recently received additions of new unsupervised vehicles to their fleets. This coordinated progress across Texas strengthens Tesla’s regional presence and provides a broader testing ground for the technology.
This milestone carries substantial weight in the development of autonomous vehicles. Extending operations into low-light conditions meaningfully expands the Robotaxi’s operational design domain (ODD)—the specific environments and scenarios in which the system is approved to operate safely without human intervention.
Nighttime driving presents unique technical demands: diminished visibility, headlight glare from oncoming traffic, reduced contrast for identifying pedestrians and lane markings, and greater variability in camera sensor exposure.
Tesla’s pure vision approach, powered by neural networks trained on vast real-world datasets rather than lidar or pre-mapped routes, must handle these variables reliably. Demonstrating consistent unsupervised performance after sunset validates the robustness of the end-to-end AI stack and its ability to generalize across diverse lighting conditions.
Beyond technical validation, the expansion holds important operational and economic implications. Evening hours often coincide with peak urban demand for rides, including commutes, dining, and entertainment outings.
Enabling service during these periods increases daily vehicle utilization, allowing each Robotaxi to generate more revenue while gathering additional high-value training data. Higher utilization accelerates the virtuous cycle of data collection, model improvement, and further ODD growth.
Looking ahead, this step paves the way for more ambitious rollouts. Success in low-light environments positions Tesla to pursue near-24-hour operations, potentially integrating highways and expanding into varied weather patterns. Regulators worldwide frequently demand evidence of safe performance across day-night cycles before granting wider approvals.
Proven capability in Texas could expedite deployments in planned cities such as Phoenix, Miami, Orlando, Tampa, and Las Vegas during the first half of 2026.
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Moreover, scaling evening service supports Tesla’s long-term vision of a high-efficiency robotaxi network. Greater fleet productivity lowers the cost per mile, making autonomous mobility more accessible and competitive against traditional ride-hailing.
As the company iterates on software updates informed by nighttime data, reliability is expected to compound rapidly, unlocking denser urban coverage and longer-distance trips.
In summary, the introduction of an unsupervised evening Robotaxi service in Austin represents more than an incremental schedule adjustment. It signals a critical maturation of the underlying technology and sets the foundation for broader geographic and temporal expansion.
With Texas operations gaining momentum, Tesla is steadily advancing toward transforming urban transportation at scale.
Cybertruck
Tesla Cybercab just rolled through Miami inside a glass box
Tesla paraded a Cybercab in a glass display at Miami’s F1 Grand Prix event this week.
Tesla set up an “Autonomy Pop-Up” at Lummus Park in Miami Beach from April 29 through May 3, 2026, embedded within the official F1 Miami Grand Prix Fan Fest. The centerpiece was a Cybertruck towing the Cybercab inside a glass display case marked “Future is Autonomous,” rolling through the beachfront crowd.
Miami is on Tesla’s confirmed list of cities for robotaxi expansion in the first half of 2026, making the promotion a strategic promotion that lays groundwork in a target market.
This was not Tesla’s first time using Miami as a showcase city. In December 2025, Tesla hosted “The Future of Autonomy Visualized” at its Miami Design District showroom, coinciding with Art Basel Miami Beach. That event featured the Cybercab prototype and Optimus robots interacting with attendees. The F1 pop-up this week marks Tesla’s return to Miami and follows a pattern Tesla has been running since early 2026. Just two weeks before Miami, Tesla stationed Optimus at the Tesla Boston Boylston Street showroom on April 19 and 20, directly on the final stretch of the Boston Marathon, letting tens of thousands of runners and spectators meet the robot for free, generating massive earned media at zero advertising cost.
Tesla is sending its humanoid Optimus robot to the Boston Marathon
Tesla has confirmed plans to expand its robotaxi service to seven cities in the first half of 2026, including Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas, building on the unsupervised service already running in Austin. Musk has said he expects robotaxis to cover between a quarter and half of the United States by end of year. On the production side, Musk told shareholders that the Cybercab manufacturing process could eventually produce up to 5 million vehicles per year, targeting a cycle time of one unit every ten seconds. Scaling robotaxis to 10 million operational units over the next ten years is a key condition of his compensation package, alongside selling 20 million passenger vehicles.
As for the Cybercab’s price, Musk has said buyers will be able to purchase one for under $30,000, with an average operating cost around $0.20 per mile. Whether those numbers hold through full production remains to be seen.
Cybercab at F1 Fan Fest in Miami
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