Elon Musk, the CEO of Tesla and SpaceX, has stated via a tweet that he will only list Starlink as a public company if its cash flow is more reliable.
Musk’s tweet came after a Twitter user asked him: “Any thoughts on Starlink IPO we would love to invest in the future. Any thoughts on first dibs for Tesla retail investors?”
“At least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful, Will do my best to give long-term Tesla shareholders preference.” Musk said in a tweet.
SpaceX President, Gwynne Shotwell said Tuesday that Starlink should be ready to give continuous worldwide coverage by September, according to CNBC.
According to Reuters, Shotwell told a Macquarie Group technology conference via livestream, “We’ve successfully deployed 1,800 or so satellites, and once all of those satellites reach their operational orbit, we will have continuous worldwide coverage, so that should be around September timeframe.”
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“But then we have regulatory work to go into every country and get approved to provide telecoms services.”
Starlink has stated that it aims to deploy 12,000 satellites for a total cost of $10 billion. In May, Musk stated that Starlink will be a critical source of finance for several of his other projects, such as sending paying customers to Mars and colonizing Mars.
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Musk stated in an interview in March of last year that delivering internet could earn SpaceX up to $30 billion per year. He said that 5G isn’t ideal for the rural area because “you need range,” and that Starlink will be “useful to telecoms since Starlink will service the hardest to serve consumers.”
What this means
Starlink is not anticipated to go public for at least a few years, although Musk has stated that he will make attempts to give long-term Tesla shareholders priority. Musk has a history for changing the status quo, and Starlink is no exception. His Starlink idea is admirable, but it may attract regulatory scrutiny in other countries.
Furthermore, 5G may not be reliable for remote areas due to range, but Starlink is a superior choice in telecommunications since Starlink will service the toughest to serve clients.
What you should know
Starlink, which is presently run by SpaceX, allows individuals to connect to the internet via a satellite dish that is installed on or near their property. Starlink satellites, which were launched into orbit by SpaceX, transmit the internet down to the dish.
Customers in 11 countries, including the United States and the United Kingdom, are presently testing Starlink’s service. Nairametrics also reported last month that SpaceX is working to pursue all necessary licenses needed to bring the Starlink Satellite internet services to Nigeria.
In May, Musk stated that the business had received over 500,000 preorders for its internet service and that there would be no technological difficulties in satisfying demand.