Amazon.com Inc.'s (NASDAQ:AMZN) Project Kuiper, a space-based internet company is struggling to scale its low Earth orbit satellite production.

What Happened: The company faces a government deadline to put over 1,600 LEO satellites into orbit. The venture, which has tied up with Lockheed Martin Corp. (NYSE:LMT) and Boeing Co.'s (NYSE:BA) joint venture United Launch Alliance, as well as Jeff Bezos' Blue Origin, has finished just over a few dozen satellites so far, Bloomberg noted on Wednesday.

The FCC expects Project Kuiper to deploy at least half of its planned 3,326 satellite-strong constellation by July next year. However, Project Kuiper may apply for an extension from the FCC, given the slow output of satellites, the report suggests.

Some experts cited in the report expressed concerns over the extension, given rival Starlink‘s Elon Musk's close ties with the government as well as his involvement with DOGE, a commission tasked with cutting down federal spending.

A spokesperson for Amazon said in a statement in the report that the company was on track with its production schedule and will begin delivering services by the end of the year.

Why It Matters: The report reiterates what has been a tough time for the company, which had recently scrubbed the launch of 27 low Earth Orbit satellites aboard a ULA rocket after unfavorable weather conditions around the launch site.

In contrast, Musk's SpaceX is already a well-established player in the sector and boasts more than 7,000 satellites in its constellation. SpaceX has made significant leaps in the space-based internet services through Starlink, which recently added 27 new satellites to its constellation.

SpaceX is also among the top companies touted to build U.S. President Donald Trump's Golden Dome missile defense system, along with Palantir Technologies Inc. (NASDAQ:PLTR).

According to Benzinga Edge stock Rankings, Amazon scores well across all metrics like Growth and Quality, and has Satisfactory scores in Value and Momentum. For more such insights, sign up for Benzinga Edge today!

Check out more of Benzinga's Future Of Mobility coverage by following this link.

Read Next:

• Katy Perry, Lauren Sanchez Among Blue Origin’s All-Women NS-31 Crew Set To Take Flight In West Texas

Image Via Shutterstock