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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.
News
Tesla states Giga Berlin workforce is stable, rejects media report
As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla Germany has denied recent reports alleging that it has significantly reduced staffing at Gigafactory Berlin. As per the electric vehicle maker, production and employment levels at the facility remain stable.
Tesla denies Giga Berlin job cuts report
On Wednesday, German publication Handelsblatt reported that Tesla’s workforce in Gigafactory Berlin had been reduced by about 1,700 since 2024, a 14% drop. The publication cited internal documents as its source for its report.
In a statement to Reuters, Tesla Germany stated that there has been no significant reduction in permanent staff at its Gigafactory in Grünheide compared with 2024, and that there are no plans to curb production or cut jobs at the facility.
“Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans. Compared to 2024, there has been no significant reduction in the number of permanent staff. Nor are there any such plans,” Tesla noted in an emailed statement.
Tesla Germany also noted that it’s “completely normal” for a facility like Giga Berlin to see fluctuations in its headcount.
A likely explanation
There might be a pretty good reason why Giga Berlin reduced its headcount in 2024. As highlighted by industry watcher Alex Voigt, in April of that year, Elon Musk reduced Tesla’s global workforce by more than 10% as part of an effort to lower costs and improve productivity. At the time, several notable executives departed the company, and the Supercharger team was culled.
As with Tesla’s other factories worldwide, Giga Berlin adjusted staffing during that period as well. This could suggest that a substantial number of the 1,700 employees reported by Handelsblatt were likely part of the workers who were let go by Elon Musk during Tesla’s last major workforce reduction.
In contrast to claims of contraction, Tesla has repeatedly signaled plans to expand production capacity in Germany. Giga Berlin factory manager André Thierig has stated on several occasions that the site is expected to increase output in 2026, reinforcing the idea that the facility’s long-term trajectory remains growth-oriented.
Elon Musk got a brash response from Ryanair CEO Michael O’Leary, who said in a press conference on Wednesday afternoon that the Tesla frontman’s criticism of the airline not equipping Starlink has increased bookings for the next few months.
The two have had a continuing feud over the past several weeks after Musk criticized the airline for not using Starlink for its flights, which would enable fast, free, and reliable Wi-Fi on its aircraft.
Tesla CEO Elon Musk trolls budget airline after it refuses Starlink on its planes
Musk said earlier this week that he was entertaining the idea of purchasing Ryanair and putting someone named Ryan in charge, which would oust O’Leary from his position.
However, the barbs continued today, as O’Leary held a press conference, aiming to dispel any beliefs about Starlink and its use case for Ryanair flights, which are typically short in length.
O’Leary said in the press conference today:
“The Starlink people believe that 90% of our passengers would happily pay for wifi access. Our experience tells us less than 10% would pay; He (Elon) called me a retar*ed twat. He would have to join the back of a very, very long queue of people that already think I’m a retar*ed twat, including my four teenage children.”
He then went on to say that, due to Musk’s publicity, bookings for Ryanair flights have increased over the past few days, up 2 to 3 percent:
“But we do want to thank him for the wonderful boost in publicity. Our bookings are up 2-3% in the last few days. So thank you to Mr. Musk, but he’s wrong on the fuel drag. Non-European citizens cannot own a majority of European airlines, but if he wants to invest in Ryanair, we think it would be a very good investment.”
O’Leary didn’t end there, as he called Musk’s social media platform X a “cesspit,” and said he has no concern over becoming a member of it. However, Ryanair has been very active on X for several years, gaining notoriety for being comical and lighthearted.
🚨 Ryanair CEO’s comments on X and Starlink today at the planned presser.
Strange comments here, it just feels like it’s time to end all this crap https://t.co/NYeG95bM82
— TESLARATI (@Teslarati) January 21, 2026
The public spat between the two has definitely benefited Ryanair, and many are calling for it to end, especially those who support Musk, as they see it as a distraction.
Nevertheless, it is likely going to end with no real movement either way, and is more than likely just a bit of hilarity between the two parties that will end in the coming days.
News
Tesla CEO Elon Musk outlines expectations for Cybercab production
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.
Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.
Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised
This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.
However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.
With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:
“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”
Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.
With the important caveat that initial production is always very slow and follows an S-curve.
The speed of the production ramp is inversely proportionate to how many new parts and steps there are.
For Cybercab and Optimus, almost everything is new, so the early production…
— Elon Musk (@elonmusk) January 20, 2026
The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.
Musk said back in October 2024:
“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”
When April comes, we will find out exactly how things will move forward with Cybercab production.
Tesla states Giga Berlin workforce is stable, rejects media report
Elon Musk gets brash response from Ryanair CEO, who thanks him for booking increase
