Those battles all take place under .25 or lower time dilation so that the servers can handle the load. Star Citizen plans on having a massive player count per shard under full normal time.
How do they plan on doing that though. There are like fundamental computer science problems to be solved, and it's not just like a problem you can throw a faster computer at.
"Trust us, we picked cryengine, a game engine with near zero multiplayer tech, for a game that is literally trying to break new ground in computer science. We definitely know what we are doing, and Chris Roberts is totally a great project manager that hasn't come close to killing nearly every project he has been in charge of, including several space games."
At 10 Hz that is 40 million updates a second.
There are caches and prediction that can help but I ignore all gameplay in that number, it is just flying around.