Musk Highlights "Going Public When Cash Flow Predictable"
Company Value Up 18%, Starlink Revenue Surges 6x
Aerospace company SpaceX's satellite internet business 'Starlink' has announced that it has started making a profit, drawing investors' attention to the possibility of SpaceX going public.
Musk mentions "Starlink reaches break-even point"... Attention on IPO possibility
On the 2nd (local time), according to major foreign media including the U.S. economic outlet CNBC, Elon Musk, CEO of SpaceX, stated on X (formerly Twitter), "Starlink's cash flow has reached the break-even point," calling it "a great achievement by an amazing team."
He added, "Starlink satellites now make up the majority of all active satellites," and "by next year, they will account for more than half of all satellites launched from Earth to date."
However, he did not specify the exact timing or duration of reaching the break-even point.
Earlier, Gwynne Shotwell, President and COO of SpaceX, said earlier this year that Starlink's quarterly cash flow last year was positive (+), and that SpaceX would turn profitable within this year.
Foreign media analyzed that Musk's break-even point remarks could mark a turning point for SpaceX. Musk had stated in 2021, "Once SpaceX's cash flow can be reasonably predicted, Starlink will be spun off and go public." However, until last year, Musk said that Starlink was operating at a loss and that the biggest goal was to avoid bankruptcy.
In the market, SpaceX's corporate value is estimated at about $150 billion (approximately 200.1 trillion KRW), an 18% increase from last year's valuation of $127 billion.
Low Earth Orbit satellite internet business 'Starlink' sees revenue surge over sixfold year-on-year... Calls for checks on Musk's growing influence through Starlink
This is interpreted as thanks to the influence of its core business, Starlink.
Starlink, SpaceX's core business, places satellites in low Earth orbit to provide internet coverage across all regions without blind spots. Starlink's revenue last year was $1.4 billion, a more than sixfold increase compared to the previous year.
Since 2019, SpaceX has launched about 5,000 satellites through Starlink.
Starlink gained attention by providing necessary satellite communications to Ukraine, which is at war with Russia.
Additionally, Starlink plans to support the Gaza Strip, where Israel and the Palestinian armed group Hamas are engaged in conflict.
In October, when internet service was cut off in the Gaza Strip, Musk stated, "We will support communication services in Gaza with internationally recognized relief organizations."
Meanwhile, voices calling for checks on Starlink have emerged in U.S. political circles, including reports that Musk decided not to operate some of Starlink's communication networks active in Ukraine. However, Walter Isaacson, Musk's biographer who reported this, acknowledged that some parts of his account contained errors.
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