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SpaceX’s Starlink internet a step closer to customers as “user terminal” hiring ramps up
As SpaceX prepares to kick off an aggressive Starlink launch campaign in the next month or two, the company is also aggressively hiring build teams that will engineer and mass-produce crucial ground-based hardware, ranging from ground stations and mobile applications to the “user terminals” that will go in customer homes.
The proposed Starlink satellite internet constellation will be comprised of up to 12,000 satellites in low Earth orbit (LEO) and is designed to provide low latency high-speed broadband internet service the world over. Company CEO Elon Musk has previously discussed that a major focus of the constellation would be to provide reliable and fast internet service to rural and remote locations where existing service may be far too expensive or unreliable.
Over the last 6-12 months, an array of job listings have advertised well over a hundred new positions related to Starlink, with a recent trend towards prioritization of user terminal production at SpaceX’s Hawthorne, CA headquarters. SpaceX is also looking to expand its software development workforce to mature the software needed for user terminals and create a range of other customer-facing products, including a “Starlink Mobile” app for both Android and iOS devices.
Similar to current satellite TV and internet solutions, SpaceX’s Starlink internet service will require ground-based receivers – “user terminals” – at their location of use. By all appearances, SpaceX may also have plans to integrate a WiFi router directly into the terminal to make the user experience as seamless as possible, but it’s just as likely that SpaceX will simply include ports for users to connect their own routers. Musk has previously stated that the user terminals will use phased arrays antennas that will allow them to stay motionless on the ground while electronically ‘steering’ to ensure the best possible satellite connection.
The user terminals will be the connect-all hardware point that will “sit in (Starlink) customers’ homes” to “bridge the gap between OS software, flight software, antenna software, and modem software.” Presumably, the User Terminals will be far more advanced than current access modems and will also encompass a router that would allow satellite wifi service throughout the area of access. Past statements indicate that SpaceX intends for the terminals to be roughly the size of a small pizza box.
In line with user terminal planning, SpaceX has also begun hiring developers for a Starlink Mobile application. This will enable customers to enjoy “a seamless experience managing their accounts and internet access”, presumably offering something akin to the experience that current Tesla customers have with Tesla’s mobile apps.
The current Tesla app is a comprehensive experience that allows user monitoring and customization of every aspect of their Tesla products inclusing vehicles and Powerwall energy systems. The experience guides the user from set-up to everyday use of their various Tesla products.
From the senior software engineer job listing, it can be assumed that the Starlink Mobile app will be comparable to the Tesla app. The advertised position will “bring to life the mobile portal into Starlink.” It’s very likely that the Starlink Mobile app will allow the user to monitor device connections, download and upload speeds, and other customer-specific experiences such as account access and billing. The app will be built completely in-house and from the ground up to ensure that it is specified and tailored to meet the various requirements of a comprehensive and quality customer experience.
SpaceX is expected to ramp up the development and manufacturing of all Starlink supportive ground systems within the coming weeks and months. The advertised positions are all located in California – the software development and manufacturing of User Terminal Teams based in Hawthorne while the mobile application software engineer position is located in Los Angeles.
According to President and COO Gwynne Shotwell, SpaceX aspires to launch 2-4 more missions in 2019 and as many as 24 dedicated Starlink missions in 2020 alone, roughly translating to a Starlink launch ever two weeks. Customer launches would occur in the interim and SpaceX has made it clear that customers will come first, with Starlink missions then filling in the gaps left in SpaceX’s commercial manifest.
SpaceX ultimately believes that it can begin serving customers after as few as 6-8 launches with 60 Starlink satellites apiece, while initial global coverage will require 24 launches. Beyond those milestones, more launches (involving anywhere from 10,000 to 40,000+ additional satellites) would simply add bandwidth and allow SpaceX to expand its customer base and distribute additional capacity based on demand.
SpaceX’s next two Starlink missions are scheduled to launch no earlier than mid-November and December 2019.
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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
