Elon Musk has many ideas, and as a serial entrepreneur many have failed, but many have also succeeded. Some notable ventures outside of the better-known Tesla and SpaceX include The Boring Company, OpenAI, Neuralink, and Hyperloop. One of the newest ventures is a project of SpaceX. The project, called Starlink is a satellite internet constellation being constructed to provide satellite internet access for people across the world. Yesterday a new milestone was reached for the project, with Elon Musk announcing that the satellite internet network Starlink recently passed near 70,000 active users and expects fast-paced growth in the year ahead.
Starlink revolutionizes internet access by making it much cheaper for many in developing countries that may not otherwise have it. For example, Starlink is now available for pre-orders in India for $99. Prospective customers can go to Starlink’s website to pre-order the service which is said to be made available in 2022 to Indian users.
Many believe that the economics of the project simply makes no sense, in fact, SpaceX is currently losing money on the project. Musk said himself that the hardware costs near $1,300 each but SpaceX charge users $499. On the larger scale, according to CNBC Starlink may cost SpaceX between $5 billion and $10 billion to become fully operational and then as much as $20 billion to $30 billion in investment over the long term. Despite this, however, SpaceX is optimistic it can tap into an even larger market that could bring in as much as $30 billion a year. SpaceX is currently a private company, but if it went public in the near future, would you invest? And why?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.