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SpaceX’s internet satellite strategy faces possible setback (Correction: It’s actually in great shape)
Correction: Upon further analysis of FCC filings and proposed updates to ITU regulations, SpaceX’s Internet constellation is on much steadier ground than it initially appeared to be, and the FCC decision made on September 26 2017 to update its NGSO FSS regulations is likely to help SpaceX far more than it might harm the company.
The ITU has since 2015 taken a stance that aligns more with the FCC’s cooperative spectrum sharing policy and did not intend for Part 5 of its Radio Regulations to be interpreted as a “first come, first serve” attitude. Specifically, the ITU’s 2017 Rules of Procedure pointedly state in Article 9.6 (Word document download) that those rules were not intended “to state an order of priorities for rights to a particular orbital position” and that “the [interference] coordination process is a two way process”. An ex parte filed with the FCC (PDF download) by SpaceX on September 15 stated SpaceX’s support for these international and domestic policy adoptions, as well as the FCC International Bureau’s responsive consideration of SpaceX’s own suggestions.
The company’s first two test satellites could still launch later this year
The U.S. Federal Communications Commission (FCC) responded September 7th to requests for modification to existing satellite communications regulations and FCC practices from a number of prospective constellation operators, including OneWeb, Telesat, and SpaceX.
The FCC ultimately decided to avoid one major rule change that could force SpaceX to completely reconsider its strategic approach to its proposed Low Earth Orbit broadband constellation.
To grossly oversimplify, SpaceX had requested that the FCC apply their non-interference rules for lower orbit communications satellites to internet constellations operating both inside and outside the physical United States. These rules require that communication satellites operating in non-geostationary orbits (NGSO) share the available wireless spectrum equally among themselves when two or more satellites pass within a certain distance of each other relative to ground stations. In simpler terms, consider your smartphone’s cellular connectivity. The FCC’s rule for satellites in lower orbits can be thought of like multiple smartphones using the same cell tower to access the internet: the cell tower simply acknowledges the multiple devices it needs to serve and allows each device a certain amount of bandwidth.
However, the FCC is admittedly a domestic Commission focused on administering communications rules and regulations in the United States, and an agency already exists for coordinating global communications needs, called the International Telecommunication Union (ITU). The ITU’s Radio Regulations are considerably more simplistic. Rather than the FCC’s more nuanced and reasonable methods of spectrum sharing, the ITU allows the first satellite operator actively using a certain orbit or spectrum to become the primary coordinator for all interference issues. Put more simply, it gives those who launch communications satellites first a “first come, first serve” advantage that lets those entities then set the rules for interference with their constellation.
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- In these figures, SpaceX attempts to demonstrate the significance of cooperation between different satellite constellation operators. (SpaceX/FCC)
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- Compared to the first figure, interference events while sharing data on satellite locations is almost nonexistent. (SpaceX/FCC)
Both OneWeb and Telesat, companies also interested in launching global broadband constellations, are licensed in countries other than the United States, meaning that the FCC has given the ITU precedent in deciding how to deal with SpaceX’s potential constellation interference. SpaceX’s proposed constellation of at least several thousand satellites ends up being at a distinct disadvantage simply because it would take far longer for SpaceX to even partially complete its constellation when compared with competitors like OneWeb, who expect to finish launching the first phase of their constellation several hundred satellites by the end of 2020. Under the ITU’s regulations, SpaceX could be forced by competitors to effectively step on eggshells around their constellations by avoiding interference to the furthest extent possible, rather than simply sharing spectrum in the brief periods where different satellites temporarily interfere with each other.
While the FCC’s choice to cede international interference coordination to the ITU is a huge blow to SpaceX’s proposed internet constellation efforts, the same September 7th report also eased a handful of other requirements that would have proven difficult for SpaceX’s massive constellation. For geostationary constellations, the FCC previously required that all satellites be launched within a period of six years, with failure to do so resulting in a revoked license for the company in question. In a small concession to SES, O3b, and SpaceX, the FCC now plans to require that 50% of lower orbit satellite constellations be launched within six years of receiving an FCC license. This would still be a massive challenge for SpaceX’s plan of 4,425 initial satellites and a follow-up constellation of more than 7,000 additional satellites (PDF download).
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- Falcon 9 lands on drone ship JRTI after launching Formosat-5, August 2017. (SpaceX)
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- 2017 saw SpaceX recovery 10 Falcon 9 first stages, 5 by sea. (SpaceX)
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- Falcon 9 B1040 returns to LZ-1 after the launch of the USAF’s X-37B spaceplane. (SpaceX)
The FCC’s September 7th report will not become final unless it is passed by vote in a September 26th Open Commission Meeting. It is possible that SpaceX council will make a statement protesting the FCC’s decision, but it is nevertheless likely that the FCC’s report will be accepted and become official. While the LEO internet constellation has remained a low priority for SpaceX since it was revealed in 2015, the company has steadily continued work on the project and SpaceX has every reason to continue pursuing it given the potential profit margins it could produce. In spite of the now expanded difficulties lying ahead, SpaceX appears to be preparing for the first launch of two test satellites related to its internet constellation efforts. The move is seen as a likely attempt to tag along as passengers during SpaceX’s launch of PAZ, a Spanish earth imaging satellite, during the final three months of 2017.
Elon Musk is scheduled to reveal more details on SpaceX’s Mars exploration and colonization efforts on September 29th. He has stated that this presentation will focus more on the “how” of colonizing Mars, revealing how exactly SpaceX thinks it can fund the development of its Interplanetary Transport System. Musk also confirmed several weeks ago that SpaceX had reduced the size of the ITS rocket to a still-massive diameter of 9 meters, and sources inside the company have also indicated that the company is thinking about modifying its LC-39A Florida launch pad to support both Falcon and ITS vehicles. SpaceX recruiters revealed earlier this week that SpaceX also intends to have their Boca Chica, Texas launch pad, which is currently under construction, be capable of eventually launching ITS-sized vehicles once it comes online in 2019 or later.
Tesla Cybercab is using a unique strategy for picking up the correct rider, which is a crucial part of ride-hailing to ensure people end up in the right place and are charged the correct price.
Cybercab will utilize an RGB strip in its front light bar that will illuminate in a variety of different colors to mark itself.
This identifying mark will also appear in the Robotaxi app, giving riders in the same location a notable distinction in an effort to avoid any confusion regarding who should get in each vehicle.
🚨 Tesla is using different light bar colors to help riders understand which vehicle is theirs
Pretty cool strategy pic.twitter.com/eGMpEMeRpc
— TESLARATI (@Teslarati) August 27, 2026
Other ride-hailing services use similar strategies: Lyft and Uber rides are recognizable through driver identity, vehicle type and color, as well as license plate. Waymo will display the rider’s initials on top of the vehicle, letting them know that the specific vehicle for them has arrived.
Tesla’s strategy is unique and interesting, but there are some flaws. Cybercab’s main purpose is aimed toward being an autonomous ride for all, including those who have disabilities like being blind or even color blind.
Tesla will likely have something in the pipeline for those who cannot see colors or have limited vision. There will definitely be multiple ways to identify which vehicle is the one that “you” specifically ordered.
Cybercab is set to start giving public rides next Thursday, September 3, in Austin, as it announced a dedicated event last week and invited many members of the Tesla community.
Additionally, members of the public will be invited as well. Tesla has been offering employee rides in Cybercab for nearly two months.
Tesla has said goodbye to one customization option for its vehicles: the wrap service it launched several years ago.
After launching an in-house wrap service in August 2020 for the first time in China. In the U.S., it launched in October 2023. Tesla continued to expand the program and adjust it with better pricing and fewer options for the Cybertruck.
By December 2023, it was giving owners of the Model 3, Model Y, and the Cybertruck the opportunity to give their vehicle a fresh look with a vinyl wrap.
Tesla revamps in-house vinyl wrap service with better pricing
It was only available in five locations: Costa Mesa, Oceanside, Santa Clara, West Covina, all in California, and Seattle, Washington.
However, Tesla made some big adjustments to its shop, and the wrap service is officially gone:
Tesla has made a LOT of changes to its online shop recently — price increases, price cuts, new options, and several products being removed entirely.
Some of the biggest increases are wheel covers. 👀
📈 PRICE INCREASES
• 2017-2023 | Model 3 Aero Wheel Cover — Style: Refresh…— Phoenix Self-Driving 🐦🔥 (@PhoenixFSD) August 25, 2026
Wraps are very popular across the Tesla lineup, especially since the company offers relatively few colors. Many choose to wrap their Teslas with interesting colors, patterns, or even finishes, turning their cars from glossy to satin or matte.
However, Tesla’s wrap service was so limited geographically that it never really had a chance to get off the ground or compete with local shops. Every area in the United States is now overflowing with detailing shops, mobile detailers, and other automotive specialists, many of whom perform wrap services.
Tesla’s service was confined to the Pacific time zone and only spanned across two states. It was never going to be something Tesla was a major competitor in, nor was it going to disrupt the wrapping industry. Now that the program has ended, it seems pretty ideal to believe it was always going to be a short-term thing.
Along with the wrap service, Tesla removed several other products, but nothing too crazy. The Model 3 Door Pocket and Cupholder Liners, the Model S 19″ Magnetite Wheel and Winter Tire Package, Model X/Y Ski/Snowboard Carrier for Hitch Rack, Tesla’s Electric Summer Party Tee, and the Electric Summer Tee were the other items the company totally eliminated from its online shop.
TESLARATI Premium Membership
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Tesla Robotaxi fleet gets a brain upgrade ahead of Cybercab launch event
Tesla’s Robotaxi service now runs longer hours nationwide as its unsupervised fleet quietly grows larger.
Tesla’s Robotaxi service just got easier to catch, with the company’s official Robotaxi account noting that rides are now available from 6 a.m. to 10 p.m., seven days a week, across its operating footprint. The account also said its unsupervised fleet is “a lot bigger” than before, though without specifics. The bigger change is what Tesla says upgraded intelligence in vehicle distribution and routing is what’s actually cutting wait times, not a new Full Self-Driving version.
While Tesla did not name the team behind the upgrade, the language points to its AI and fleet software group rather than the driving stack itself. Vehicle distribution and routing in Robotaxi has functioned mostly as a dispatch problem with the software deciding which idle car goes to which rider, and how far it has to travel to get there. “Upgraded intelligence” suggests a smarter version of that dispatch logic, likely using demand forecasting to position idle cars near where riders are about to request them rather than reacting once a request comes in. Tesla’s AI division has built similar prediction systems for other parts of the business, including the neural networks that power FSD itself, so applying that same approach to fleet logistics would be a natural extension rather than a new discipline for the team.
Robotaxi now runs 6am to 10pm, 7 days/week
Unsupervised fleet is a lot bigger
Also, upgraded intelligence in vehicle distribution & routing means you wait less pic.twitter.com/UFZ4bqg2dZ
— Tesla Robotaxi (@robotaxi) August 26, 2026
Tesla is also about a week away from a separate robotaxi milestone. The company plans to launch Cybercab, its purpose built two seat robotaxi with no steering wheel or pedals, in Austin on September 3. Cybercab has been giving employees rides on public and private roads for weeks, and the September event is expected to fold those vehicles into the existing Robotaxi fleet within days of the launch.
Thank you so much @Tesla for inviting us to the Cybercab launch in Austin! 🤠 pic.twitter.com/F1rAR8zd5O
— TESLARATI (@Teslarati) August 22, 2026
Austin previously ran Robotaxi from 6 a.m. to 2 a.m. as of last September, a schedule set before the service expanded into Dallas, Houston, Miami, Tampa, Orlando and the Bay Area. Wednesday’s post did not specify whether that extended overnight window still applies in Austin specifically or whether 6 a.m. to 10 p.m. is now the standard across every market. Tesla’s post, visible on its official Robotaxi account, framed the change simply as fewer riders waiting around for a car.
Whether the wider hours hold once Cybercab enters the fleet next week is the next thing worth watching. Tesla has tended to expand Robotaxi in increments, first geofence, then hours, then fleet size, and each step so far has arrived without much advance notice.
Tesla Cybercab uses a unique strategy for picking up the right rider
Tesla ends in-house wrap service that always seemed like a short-term program
