- SpaceX’s Starlink division reaches breakeven point but details remain unclear.
- Elon Musk contemplates a potential IPO for Starlink but it might not happen until 2025.
- This financial milestone comes shortfly after its expansion of services and the establishment of a new satellite antenna manufacturing facility.
Elon Musk, the CEO of SpaceX, announced that the company’s satellite internet division, Starlink, has achieved breakeven point. While the specifics of this achievement were not disclosed, Musk praised his team for their excellent work.
A step towards potential IPO
Earlier in the year, SpaceX’s President and Chief Operating Officer, Gwynne Shotwell, revealed that Starlink had a cash flow positive quarter in 2022. In the first quarter of 2023, the overall SpaceX company reportedly turned a profit. The soaring valuation of SpaceX, now at around $150 billion, attributes much of its success to Starlink.
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Musk has previously contemplated taking Starlink public through an initial public offering (IPO) once it is in a stable position. However, the exact timing of a Starlink IPO remains uncertain, with Musk suggesting it might not occur until 2025 or later. He has expressed reservations about going public, stating that “being public is definitely an invitation to pain,” and that stock prices can be distracting.
Expansion in the horizon
Starlink, the global communications network developed by Musk’s company, has disrupted the satellite communications sector. It initially targeted the consumer market, and recent reports suggest it has over two million subscribers. Starlink has expanded its services to national security, enterprise, mobility, maritime, and aviation markets.
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Along with the expansion of services, SpaceX recently announced the opening of a new satellite antenna manufacturing facility in Bastrop, Texas, near Austin. This new facility seems to foreshadow SpaceX’s upcoming strides in the space industry.
