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SpaceX outfits Starship prototype with unique Starlink satellite dispenser
After several weeks of work and occasional glimpses of the hardware and installation process, it’s now clear that SpaceX has outfitted part of its next Starship prototype with a truly unique Starlink satellite dispenser.
It remains to be seen if this particular assembly is simply a pathfinder – an experiment never meant for flight – or an integral part of a prototype that could become the first Starship to reach space or even orbit. In the first few months of 2022 a pathfinder with a much larger bay door was also quickly assembled but ultimately moved to the scrapyard. SpaceX’s latest payload bay prototype is quite different.
First, the device installed inside what appears to be the steel rings Starship S24’s nosecone will eventually be stacked on top of is almost nothing like any satellite deployment adapter observed in the past or present. The rectangular framework SpaceX craned inside of the barrel-like section of five steel rings – a cylinder measuring around 9m x 9m (30 ft x 30 ft) – about two weeks ago looked rudimentary and lacked any obvious moving parts, generating some ambiguity. Based on its apparent dimensions, the frame could likely extend anywhere from 10-15m (30-50 feet) up into Ship 24’s nosecone before the diameter would get too narrow for it to continue.
If it was a satellite deployment adapter, which most expected it to be, it was nothing like any other common adapter – including SpaceX’s own unusual present-day Starlink deployment method. It wasn’t until March 24th that SpaceX spun the nose barrel around, revealing an unusual cutout akin to a giant mail slot. At that point, it became clear that Ship 24’s nose had been fitted with a Starlink satellite deployment mechanism akin to a giant PEZ dispenser.
Instead of a large, alligator-like payload bay, all Starship would need is a comparatively tiny slot and either an active or passive mechanical deployment mechanism. Starlink satellites would first be loaded one by one into the slot and somehow lifted inside the bay on the rail-like frame SpaceX recently installed. Eventually, that dispenser would be filled with a stack of an unknown number of Starlink satellites – likely larger Starlink V2 prototypes but possibly today’s smaller V1.5 satellite variant. Once in orbit, the stack of satellites would be ejected one by one through Starship’s payload slot. The satellites could potentially be passively fed down to the slot with a tension mechanism or Starship’s maneuvering thrusters, reducing the dispenser’s complexity.
Crucially, alongside the first fully outfitted prototype with an upgraded Starship nosecone design, the ‘nose barrel’ the apparent Starlink dispenser is part of has also been fitted with heat shield stand-offs, ceramic wool insulation, and netting. Most importantly, technicians began installing dinner plate-sized heat shield tiles on the barrel section’s exterior within the last few days. The logic behind SpaceX’s Starbase decision-making has been increasingly indecipherable in recent months but, in theory, it would make little logical sense to waste time, effort, and money installing a thermal protection system (TPS) on a Starlink dispenser.
In other words, it’s quite likely that this Starlink dispenser is actually a part of Ship 24 flight hardware. Alongside Booster 7, Ship 24 is widely believed to be the first Starship scheduled to attempt an orbital launch after the recent demotion of Ship 20 and Booster 4. That means that it’s quite possible that this dispenser is actually meant to deploy Starlink satellites from Starship. According to Elon Musk, Ship 24 and Booster 7’s orbital test flight could occur as early as May 2022.
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Tesla CEO Elon Musk said that flying cars will be coming to the market, something that his own company has hinted at previously.
Musk said on X, in response to a post that read, “We were promised flying cars and all we got is infinite superintelligence for everyone,” “You will get flying cars.”
You will get flying cars
— Elon Musk (@elonmusk) August 12, 2026
The post rang back to when Musk teased flying and hovering capabilities for the Tesla Roadster, the company’s supercar that has been delayed more times than anyone cares to count. It was set for an unveiling earlier this year, but it was then pushed back to August. There is still no sign of it coming.
However, that does not mean it won’t. But one of the biggest features of the Roadster that was teased was a SpaceX package that featured cold gas thrusters on the rear end that would help with white-knuckle acceleration. Another set would face the ground and would help the Roadster gain small bits of altitude, potentially helpful to jump over obstacles.
Elon Musk hints at Tesla Roadster’s “hovering” abilities in SpaceX package
But it is not a straightforward thing for Musk. As a serial entrepreneur, he tends to spend his time on major disruptors; currently, his largest projects are artificial intelligence and compute power, as well as SpaceX’s launches that will eventually make life multiplanetary.
In the past, he has been critical of flying cars and has been in favor of tunnels, one of the big reasons he started the Boring Company. In 2017 at a TED talk, he said:
“There is a challenge with flying cars in that they’ll be quite noisy. The wind force generated will be very high. Let’s just say that if something’s flying over your head, if there are a whole bunch of flying cars all over the place, that is not an anxiety-reducing situation…You’re thinking, ‘Did they service their hubcap? Or is it going to come off and guillotine me as they’re flying past?'”
However, he’s never been against them. He has also said he’s in favor of both tunnels and flying cars.
Contrary to press reports, I’m not against flying cars. Just said it was important to consider both pros and cons.
— Elon Musk (@elonmusk) March 24, 2015
Most recently, Musk said that anyone who wants a flying car should be able to get one. This was stated last October on the Joe Rogan Experience:
“My friend Peter Thiel once reflected that the future was supposed to have flying cars, but we don’t have flying cars… I think if Peter wants a flying car, we should be able to buy one.”
Whether the Roadster will be Tesla’s flying car or potentially another one remains in the mind of Musk. Of course, the Roadster will have to make its way to production lines before we find out.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
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.
Tesla CEO Elon Musk says flying cars are coming
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
