Space Exploration Technologies Corp. guided 260 Starlink satellites to burn up in Earth’s atmosphere between Dec. 1, 2025, and May 31, 2026, according to a semiannual compliance report filed with the Federal Communications Commission (FCC). The disposals are part of the company's strategy to manage its growing constellation, which currently operates more than 10,000 satellites, as it expands the network and pushes Starlink Mobile, a direct-to-phone service.

Satellite Fleet Management

The filing specified that 176 of the deorbited satellites belonged to the first-generation Starlink constellation, while the remaining units came from the Gen2 fleet. Additionally, 349 satellites were decommissioned during the same period and are expected to be disposed of in the coming months. The satellites are designed to last about five years, allowing SpaceX to swap aging spacecraft for newer models as fuel runs low.

At the end of their operational life, a Starlink satellite uses its remaining fuel to lower its orbit. Atmospheric drag then pulls the spacecraft down, where heat and friction burn it up rather than leaving dead hardware in low Earth orbit.

Disposal Statistics and Fleet Weight

The pace of satellite removal has become routine for the massive constellation. Tracking data compiled by astrophysicist Jonathan McDowell indicates that a total of 1,357 Starlink satellites have re-entered the Earth’s atmosphere and burned up to date. SpaceX has stated that retrieval is impractical due to the weight of the units.

Regulatory Approvals and Future Expansion

The disposals coincide with SpaceX's efforts to secure approval for a much larger Starlink network. In January, the FCC approved 7,500 additional Gen2 satellites. The company has long discussed a constellation that could eventually reach 42,000 satellites.

SpaceX’s ambitions also extend to orbital data centers intended to bypass Earth’s strained power grids. The company has sought FCC permission for up to 1 million compute satellites, unveiled an AI1 design, and outlined a Terafab chip project in Bastrop, Texas. SpaceX expects specialized facilities to assemble AI satellites by late 2027, with initial orbital compute launches targeted for 2028.

Elon Musk, the CEO of Space Exploration Technologies Corp., has refuted reports that his company is developing a handheld AI device. Musk took to X to respond to the claims, labeling them as "utterly false." The denial follows a published report suggesting SpaceX had presented investors with a prototype of a device similar to Apple Inc.'s iPhone, though the original post regarding the report was later deleted.

The disputed report, published by the Wall Street Journal on Wednesday, indicated that the device would be "slimmer" than an iPhone and run on SpaceX’s proprietary system using AI technology from xAI. It further claimed the device would include chips from Qualcomm Inc. However, the report noted the device was still in the prototype phase with no official name, and it remained unclear if it would ever be released to the public.

Earlier this year, Musk stated a Starlink phone was "not out of the question" and could be AI-optimized, but he later clarified that SpaceX is not developing a smartphone. The recent report emerged after SpaceX President Gwynne Shotwell reportedly informed investors last month about plans to launch a Starlink retail product for U.S. consumers and build its own terrestrial mobile network.

Analyst Perspectives on Market Entry

Analysts hold differing views on SpaceX's potential strategy in the wireless sector. An analyst at TD Cowen predicted that SpaceX could pursue an acquisition of T-Mobile US Inc. to expand its wireless ambitions. This move would leverage the existing Starlink partnership and target the growing mobile connectivity market. In its IPO filing, SpaceX estimated a $740 billion addressable market for Starlink Mobile, signaling plans to compete with carriers such as Verizon Communications and AT&T.

Conversely, analysts at Vital Knowledge expressed skepticism regarding SpaceX's ability to scale consumer device manufacturing and compete with established platforms. The firm argued that Musk's companies often receive generous valuations based on ambitious product promises rather than proven consumer products, noting it is "hard to imagine SpaceX becoming a force in consumer electronics."

Recent Stock Performance

Since its debut on June 12, SpaceX stock has declined 2.12%. On Wednesday, the stock fell 7.80% to close at $157.54.