SpaceX and Tesla’s CEO Elon Musk stated that he is planning to take Starlink, the company’s new venture, into IPO when the market growth and finance are predictable in the future.
SpaceX is a space exploration firm headed by Elon Musk, CEO of Tesla. The firm makes advanced rockets, launch vehicles, and satellites. It aims to reduce space exploration costs for successful trips to Mars.
SpaceX became the first private company to launch a liquid-propelled rocket into Space. They made rockets such as Dragon, Falcon, Falcon Heavy, and Starship.
SpaceX: The new private player
SpaceX appeared in the news earlier this year when it became the first private company to launch rockets for the International Space Station. The company is launching rockets to place satellites in orbit and to carry cargo and crew to Space. Some of the main customers of SpaceX are NASA, the Department of Defense, and other private players.
The company is developing Starship, and the most powerful rocket launched ever. The rocket will carry a payload of up to 100 tons to Space. The boosters of the rocket are reusable, which will reduce costs.
SpaceX is launching satellites regularly for Starlink, a program founded by Elon Musk. Starlink is a constellation of satellites made to provide global broadband internet connection.
Starlink has launched almost 775 satellites as a part of its network. It plans to launch 12,000 satellites into Space for internet connection. Recently, it acquired permission to launch 30,000 more satellites.
Elon Musk is expecting the Starlink program to get 40 million customers by 2025, and as a result, will generate annual revenue of 30 billion US dollars. This revenue will play a crucial role in backing Musk’s ambition of reaching Mars and colonizing it.
Elon Musk announced on Twitter that he plans to take Starlink for Initial Public Offering (IPO). By IPO, Starlink can sell its shares for people at a fixed price and raise the necessary fund. This indicates that Musk does not fear to take the company public and to increase the stakes literally.
We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable. Public market does *not* like erratic cash flow haha. I’m a huge fan of small retail investors. Will make sure they get top priority. You can hold me to it.
— Elon Musk (@elonmusk) September 28, 2020
Tech enthusiasts praise Starlink for its ambitious plan of providing broadband internet by 2020, almost on a global scale. This will result in a surge of customers to it if everything goes by plan. SpaceX President Gwynne Shotwell initially proposed this idea in February.
Elon Musk, on Monday, announced on Twitter that the IPO process for Starlink would start soon. The CEO stated that it is better to start the IPO when the revenue from the future is smooth and predictable.
According to Musk, retail buyers of IPO will get top priority. He said that he is a fan of retail investors.
This proves that Starlink may get IPO soon, but we’ll never know what might happen in the future.
Image courtesy of Kathy Hutchins/Shutterstock