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SpaceX lends Starlink to Washington emergency services as Elon Musk talks IPO
SpaceX has provided Washington’s Emergency Management department access to Starlink satellite internet service in a bid to support the state’s emergency response to dangerous wildfires.
Though the customer is technically a military department, this is the first public announcement of the internet constellation’s use in a civil service-oriented role. In the case of Malden, WA, a tiny eastern town with roughly 200 residents, a wildfire broke out in the first week of September and all but destroyed every building in a matter of hours. No fatalities have been recorded but the town and all its critical services effectively ceased to exist by the time the first passed through.
Given the sheer scale of fire damage Washington state has suffered this summer, Malden – without power or many other utilities after the fire passed through – is likely being held together with the support of emergency services departments like WA Emergency Management. Now, with SpaceX’s help, that likely includes the ability to provide some limited internet service – perhaps in a communal center or shelter – without spending an unreasonable portion of the precious little resources most emergency response agencies have to work with.
While still firmly in the development and prototype phase, SpaceX has begun to gradually expand the scope of its beta testing as the Starlink constellation expands, building off of an already strong relationship with the US military. That helps explain why, of so many possible civil recipients, WA Emergency Management – a military department – has received access to Starlink internet services first.
As SpaceX has made sure to reiterate during its many Starlink launch webcasts, the constellation’s main target demographics are those in regions that either completely or practically lack access to reliable internet. With a low Earth orbit (LEO) constellation like Starlink, SpaceX could feasibly deliver reliable, uninterrupted internet almost anywhere on Earth, so long as a prospective user has access to enough power to run their user terminal (antenna/router). According to SpaceX’s FCC application for said terminal, A/C power input requirements should never climb above 2.5 amps from a normal 100-240v outlet.
Ultimately, the second planned phase of Starlink will see the constellation grow to a point that SpaceX can seriously begin competing with ground-based ISPs – even in densely-populated areas. For now, though, the company has made it clear that the first phase – at least several thousand satellites -will primarily focus on connecting the unconnected and substantially upgrading the capabilities of emergency responders around the world.
Confirming President/COO Gwynne Shotwell’s February 2020 comments on a possible Starlink IPO, CEO Elon Musk reiterated that SpaceX may eventually spin off Starlink and make the company public, “but only several years in the future.” This is far from surprising, as Musk has consistently expressed disdain for the challenge of running Tesla as a public company, going so far as getting himself in hot legal water in an ill-fated attempt to take the company private in 2018.
Going public is possibly the single worst thing SpaceX or any SpaceX spin-off could do, given that shareholders generally have a single goal in mind: reliable profit and reliable growth. That attitude is generally the death knell for high-uncertainty R&D programs pursuing the first low Earth orbit Internet satellite constellation, reusable orbital-class rockets, 100-person Starships, or bases on the Moon and Mars. As such, Musk notes that SpaceX will consider taking Starlink public – but if and only if Starlink reaches a point where “revenue growth is smooth & predictable.” Shotwell and Musk, in other words, are on the same page.
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Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
