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SpaceX Starlink user terminals tested by board members as beta nears
SpaceX’s nascent Starlink user terminal technology – the consumer hardware that will connect customers to a vast space-based internet constellation – is being put through its paces in a series of closed tests with employees, board members, and investors.
This news comes around the same time as SpaceX took two significant steps towards a beta debut for Starlink internet service, completing the eighth successful launch of Starlink v1.0 satellites and opening a new web portal where anyone can sign up for updates on service availability in their region. According to COO and President Gwynne Shotwell, SpaceX means to begin rolling out Starlink internet service once 14 launches are completed and ~840 satellites are in orbit. Whether or not that figure includes SpaceX’s first launch of 60 ‘v0.9’ Starlink satellites back in May 2019, it’s safe to say that that 14-launch milestone is just two or three months away if the company can sustain and average of two to three launches per month.
Regardless of the spectacular, well-publicized launch component of SpaceX’s Starlink internet satellite constellation, apparent user terminal testing helps shed light on the customer-facing side of the venture. While currently just shy of invisible, the user terminal is at least as difficult and important a problem to solve as Starlink satellite production and launch – if not more important and more challenging.
As previously discussed on Teslarati, user terminals could easily make or break Starlink regardless of dozens of successful launches or the quality of satellites, ground stations, or the network in general.
“Aside from the quality, reliability, and usability of the network itself (can it stream YouTube/Netflix videos? Game? Teleconference?), the user terminals customers need in order to access said network will also be under the microscope. If SpaceX is unable to mass-produce millions of high-quality, reliable user terminals and ensure that they are easy and intuitive to use, the quality of the Starlink satellite network itself would be effectively irrelevant.
The problem is familiar for users of ISPs (i.e. a majority of humans): your WiFi router and modem can be top-of-the-line but bad internet service makes the quality of your home network irrelevant. Vice-versa, a bad router or modem will also make high-quality internet service effectively irrelevant. In other words, SpaceX fundamentally needs to ensure that neither component threatens the user experience.”
Teslarati.com – April 23rd, 2020
In other words, low-quality, buggy user terminals that are hard to set up or require frequent babysitting to ensure a stable connection would make the quality of the satellites SpaceX launches and the ground-based infrastructure it installs irrelevant. Hence the closed focus group-style testing like that described above by investor Steve Jurvetson.
According to Jurvetson, board members (him included) were invited to SpaceX on June 11th or 12th to try out Starlink user terminal prototypes the company is in the midst of developing. Specifically, each board member was given a terminal and asked to set it up themselves in a friendly race to the finish line (establishing an internet connection). Steve ultimately said that the prototype he set up offered the “simplest out-of-box experience imaginable.”
In fact, SpaceX has already been performing similar tests for several months according to a virtual seminar hosted by data company Tape Ark earlier this month, performing a similar setup test but with dozens of employees’ spouses rather than board members. While board members of a high-tech rocket company and families of its employees aren’t exactly a random sample of American (or worldwide) consumers, all non-employees tested thus far have been able to set up Starlink terminals and establish an internet connection without issue. That’s no mean feat when one considers that the alternative is setting up a modem and router and activating internet service through an ISP like Comcast, a task that can easily destroy the sanity of even technically-savvy users.
CEO Elon Musk himself has always made it clear that simplicity is a priority for Starlink user terminals, recently stating that the final product should be even simpler than the prototypes that board and family members alike had zero difficulty setting up, requiring customers to simply “plug [it] in & point [it] at [the] sky”. Given that SpaceX could be ready to roll out Starlink internet service in some capacity as early as August or September, it’s safe to say that the mysterious “UFO-on-a-stick” user terminal wont remain a secret for much longer.
Specs-wise, the same virtual seminar revealed that a normal level of connectivity for a user terminal will be around 100 megabits per second (mbps) down and 40 mbps up. According to Musk, Starlink internet latency (often known as ping) might actually be better than fiber internet, offering ~20 ms for Version 1 and ~8 ms when Version 2 debuts (ETA unknown).
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Tesla ends Full Self-Driving purchase option in the U.S.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Tesla has officially ended the option to purchase the Full Self-Driving suite outright, a move that was announced for the United States market in January by CEO Elon Musk.
The driver assistance suite is now exclusively available in the U.S. as a subscription, which is currently priced at $99 per month.
Tesla moved away from the outright purchase option in an effort to move more people to the subscription program, but there are concerns over its current price and the potential for it to rise.
In January, Musk announced that Tesla would remove the ability to purchase the suite outright for $8,000. This would give the vehicle Full Self-Driving for its entire lifespan, but Tesla intended to move away from it, for several reasons, one being that a tranche in the CEO’s pay package requires 10 million active subscriptions of FSD.
Although Tesla moved back the deadline in other countries, it has now taken effect in the U.S. on Sunday morning. Tesla updated its website to reflect this:
🚨 Tesla has officially moved the outright purchase option for FSD on its website pic.twitter.com/RZt1oIevB3
— TESLARATI (@Teslarati) February 15, 2026
There are still some concerns regarding its price, as $99 per month is not where many consumers are hoping to see the subscription price stay.
Musk has said that as capabilities improve, the price will go up, but it seems unlikely that 10 million drivers will want to pay an extra $100 every month for the capability, even if it is extremely useful.
Instead, many owners and fans of the company are calling for Tesla to offer a different type of pricing platform. This includes a tiered-system that would let owners pick and choose the features they would want for varying prices, or even a daily, weekly, monthly, and annual pricing option, which would incentivize longer-term purchasing.
Although Musk and other Tesla are aware of FSD’s capabilities and state is is worth much more than its current price, there could be some merit in the idea of offering a price for Supervised FSD and another price for Unsupervised FSD when it becomes available.
Elon Musk
Musk bankers looking to trim xAI debt after SpaceX merger: report
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. A new financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year.
Elon Musk’s bankers are looking to trim the debt that xAI has taken on over the past few years, following the company’s merger with SpaceX, a new report from Bloomberg says.
xAI has built up $18 billion in debt over the past few years, with some of this being attributed to the purchase of social media platform Twitter (now X) and the creation of the AI development company. Bankers are trying to create some kind of financing plan that would trim “some of the heavy interest costs” that come with the debt.
The financing deal would help trim some of the financial burden that is currently present ahead of the plan to take SpaceX public sometime this year. Musk has essentially confirmed that SpaceX would be heading toward an IPO last month.
The report indicates that Morgan Stanley is expected to take the leading role in any financing plan, citing people familiar with the matter. Morgan Stanley, along with Goldman Sachs, Bank of America, and JPMorgan Chase & Co., are all expected to be in the lineup of banks leading SpaceX’s potential IPO.
Since Musk acquired X, he has also had what Bloomberg says is a “mixed track record with debt markets.” Since purchasing X a few years ago with a $12.5 billion financing package, X pays “tens of millions in interest payments every month.”
That debt is held by Bank of America, Barclays, Mitsubishi, UFJ Financial, BNP Paribas SA, Mizuho, and Société Générale SA.
X merged with xAI last March, which brought the valuation to $45 billion, including the debt.
SpaceX announced the merger with xAI earlier this month, a major move in Musk’s plan to alleviate Earth of necessary data centers and replace them with orbital options that will be lower cost:
“In the long term, space-based AI is obviously the only way to scale. To harness even a millionth of our Sun’s energy would require over a million times more energy than our civilization currently uses! The only logical solution, therefore, is to transport these resource-intensive efforts to a location with vast power and space. I mean, space is called “space” for a reason.”
The merger has many advantages, but one of the most crucial is that it positions the now-merged companies to fund broader goals, fueled by revenue from the Starlink expansion, potential IPO, and AI-driven applications that could accelerate the development of lunar bases.
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Tesla pushes Full Self-Driving outright purchasing option back in one market
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
Tesla has pushed the opportunity to purchase the Full Self-Driving suite outright in one market: Australia.
The date remains February 14 in North America, but Tesla has pushed the date back to March 31, 2026, in Australia.
NEWS: Tesla is ending the option to buy FSD as a one-time outright purchase in Australia on March 31, 2026.
It still ends on Feb 14th in North America. https://t.co/qZBOztExVT pic.twitter.com/wmKRZPTf3r
— Sawyer Merritt (@SawyerMerritt) February 13, 2026
Tesla announced last month that it would eliminate the ability to purchase the Full Self-Driving software outright, instead opting for a subscription-only program, which will require users to pay monthly.
If you have already purchased the suite outright, you will not be required to subscribe once again, but once the outright purchase option is gone, drivers will be required to pay the monthly fee.
The reason for the adjustment is likely due to the short period of time the Full Self-Driving suite has been available in the country. In North America, it has been available for years.
Tesla hits major milestone with Full Self-Driving subscriptions
However, Tesla just launched it just last year in Australia.
Full Self-Driving is currently available in seven countries: the United States, Canada, China, Mexico, Australia, New Zealand, and South Korea.
The company has worked extensively for the past few years to launch the suite in Europe. It has not made it quite yet, but Tesla hopes to get it launched by the end of this year.
In North America, Tesla is only giving customers one more day to buy the suite outright before they will be committed to the subscription-based option for good.
The price is expected to go up as the capabilities improve, but there are no indications as to when Tesla will be doing that, nor what type of offering it plans to roll out for owners.
Tesla ends Full Self-Driving purchase option in the U.S.
Musk bankers looking to trim xAI debt after SpaceX merger: report
