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SpaceX’s first Starlink V2 satellites spotted at Starbase
On Monday, SpaceX was spotted loading some of the first Starlink V2 satellite prototypes into a custom mechanism designed to refill Starship’s magazine-like payload bay.
While it’s not the first time SpaceX has used the dispenser, the photos captured by photographer Kevin Randolph for the YouTube channel ‘What about it!?’ are the first to clearly show real prototypes of the next generation of Starlink satellites. According to CEO Elon Musk, those Starlink Gen2 or V2 satellites will be “at least 5 times better”, “an order of magnitude more capable,” and about four times heavier than current (V1.5) Starlink satellites.
The potential of the new satellite bus design paired with Starship’s massive fairing and lift capacity could dramatically improve the viability and cost-effectiveness of SpaceX’s Starlink constellation. First, though, the company needs to launch and qualify prototypes of the new satellite design and verify that all associated ground support equipment works as expected.
Due to the designs SpaceX has settled on for both Starlink V2.0 satellites and the Starship hardware that will deploy them in orbit, that ground support equipment and the general path each satellite will take from its arrival at the launch facilities to liftoff on a Starship are wildly different than anything done before. July 18th’s photos (and screenshots from a recent factory tour) confirm that the next-gen satellites are basically enlarged versions of their smaller predecessors, which are also narrow rectangles.
The new spacecraft have a very similar aspect ratio but are around seven meters long and three meters wide (23′ x 10′) instead of approximately 3m x 1.5m (10′ x 5′). They also appear to be about twice as thick and reportedly weigh ~1,250 kilograms to V1.5’s estimated 310 kilograms (~2,750 lb vs ~680 lb). As a result, the V2.0 bus will have about 7-10 times more usable volume than V1.0 and V1.5. It should be no surprise, then, that each next-gen satellite could offer almost magnitude more usable bandwidth.
Assuming that Starship launch costs are roughly the same as Falcon 9 and that Starship can only launch a similar 50-60 satellites at once, an almost 10x performance improvement from a satellite that only weighs five times as much relative to V1.5 would make Starlink V2.0 constellation deployment at least twice as cost-efficient to deploy even if Starship could only launch the same mass (~16 tons) as Falcon 9. In fact, a recent SpaceX render suggests that Starship will be able to carry 54 Starlink V2.0 satellites initially. As a result, even if Starship costs five times more to launch than Falcon 9 (~$75M), it will still be cheaper per unit of bandwidth launched. If Starship eventually reaches marginal launch costs as low as Falcon 9 (~$15M), the cost of Starlink launches (not including satellite cost) could plummet from about $15,000 per gigabit per second (Gbps) to around $1,500-2,500 per Gbps depending on individual satellite bandwidth.
The total cost of the network will be higher, of course, and dependent on more variables, but the combination of Starship and V2.0 satellites could eventually reduce the relative cost of Starlink launch operations by a factor of 5-10. If Starlink V2.0 satellites are actually cheaper to manufacture per unit of throughput than V1.5 satellites, which is not implausible once mass-production begins, those savings will deepen. If Starship can quickly mature and becomes fully and efficiently reusable, the equation could become even more favorable.
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Still, loading Starship with satellites is going to be no minor feat and will add a significant amount of complexity and risk relative to the methods SpaceX currently uses for Falcon 9 Starlink launches. SpaceX’s initial Starship payload bay design is a roughly square enclosure that slots just above the ship’s uppermost tank dome and below its inward-curving nosecone. Per a render of the mechanism released last month, it measures about nine meters (30 ft) tall and eight meters (26 ft) wide, can store up to 54 Starlink V2.0 satellites, and dispenses pairs of satellites through a relatively tiny payload bay door that’s only wide enough for the task at hand.
Starship’s airframe is almost exclusively welded together. Once the nosecone and payload bay are installed on top of a ship, the only way to access the interior of the bay is through the dispenser door or an even smaller human-sized access port. SpaceX’s solution: build a mobile satellite storage box that will be lifted by crane (or launch tower arms) dozens to hundreds of feet off the ground and use the payload bay’s own dispenser mechanism in reverse to load satellites like bullets into a giant magazine. If that sounds simple, which it shouldn’t, it’s not.
It’s great, then, to see SpaceX apparently practicing that process with some of the first Starlink V2.0 prototypes. In photos captured on July 18th, workers were spotted loading several satellites into the only existing ‘loader’ inside one of Starbase’s three main factory tents. Each satellite was lifted using a load-spreader device that was presumably required to prevent the extremely long and thin satellites from bending too much in the middle during the lift. It’s unclear whether SpaceX is solely practicing the process or if it’s actually installing satellites well in advance for loading onto a Starship prototype.
Starship S24 is in the middle of preflight testing and has already been greeted by the satellite loader once before, possibly to load a prototype or mockup before ground testing began. Starship S25 appears to be at least a month or two away from completion, though its nose and payload bay section are much closer.
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
