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Starlink IPO Gets Nearer As Cash Flow Turns Positive - Rumor or Not?

March 23, 2023 5:00 pm
Published by: Benjamin Baxter

In 2014, Elon Musk launched what would later be one of the most cutting-edge projects in the space industry.

Starlink started as a satellite constellation operating under SpaceX. According to Musk, he’d intended for it to be the main source of income for the mother company, and lately, there’s been strong talk about the Starlink IPO.

The constellation’s main purpose was to deliver satellite internet access to rural areas. However, it now provides services to 47 countries worldwide, exceeding its original goal.

According to Musk and some statements by Gwynne Shotwell, SpaceX’s CEO, the Starlink IPO gets nearer as cash flow turns positive. This has left the public wondering what is the Starlink valuation, what will be the Starlink share price and when is the Starlink IPO date?

An Overview of Starlink’s Finances

Since 2014, Starlink has been raising funds to shoot more small satellites into low Earth orbit. Since it’s still a private company operating under SpaceX, we don’t have full financial info about the constellation. However, there have been some details made public.

Starlink spent around $10 billion to launch satellites into orbit. According to SpaceX executives, the project is expected to drive in around $30–$50 billion annually eventually, making it the company's main income source. However, that’s currently a far-fetched goal.

In late 2022, Starlink recorded one million subscribers. With simple mathematics, you’d learn that this number brings in $1.5 billion in revenue, which is still far from SpaceX’s goals for Starlink.

However, it looks like SpaceX’s executives aren’t concerned. Shotwell estimated that Starlink would reach 60 million subscribers in the coming years.

In 2021, SpaceX raised $850 million for Starlink through equity funding. Only a year later, SpaceX applied for funding from The Federal Communications Commission, but it was rejected because, according to the FCC, Starlink didn’t meet the performance standards required to get the funding.

The main issue was about the internet speeds. When The FCC tested Starlink’s internet speeds, the uploading speed was below the 20 Mbps required to pass the test. SpaceX appealed the decision but was still not granted the funding, which was reportedly around $888.5 million.

Is Starlink IPO Getting Nearer?

Since Elon Musk ignited the flame and talked about IPO plans, investors have been watching Starlink closely, waiting for the company to open its doors for public trading. However, it’s been taking longer than expected.

In 2020, Musk stated through a tweet that Starlink stock would be open for public trading when it has a positive, predictable cash flow. The tweet created a hiatus, and people started throwing speculations around the IPO date.

Around two years later, Shotwell hinted at plans for the Starlink IPO, mentioning that it’s a business that should go public.

In late 2022, Shotwell stated that for the first time since its launching, Starlink recorded a positive flow of cash in one of the year’s quarters. You’d think this means the IPO is getting nearer, but according to CNBC, Elon Musk told his employees in mid-2022 that an IPO is still 2 or 3 years away.

How to Invest in Starlink

Since there hasn’t been a Starlink IPO yet, there’s no way to invest in Starlink because it’s not available for public trading. Though an IPO is reportedly on the horizon, until that happens, there’s no official way to invest in the project unless you con source SpaceX Pre-IPO stock, and to do that you need to get your name on a list of accredited investors that finds its way to the right financial institution that has access to what you want.

SpaceX Stock Price

Since SpaceX stock isn’t on the public market yet, there isn’t a current official SpaceX share price. In 2021, each share was valued at nearly $420, bringing the company’s entire valuation to a whopping $74 billion.

A year later, particularly in February 2022, SpaceX made a smart play to attract new investors. Back then, each share was valued at $560, but that was short-lived. The company decided to split its shares 10-for-1, which would split the $560-share into ten shares, each valued at $56.

In late 2022 SpaceX allowed the insider investors to sell their shares for $77 each. That decision alone jump-started the company’s valuation to $137 billion.

Conclusion: Is Starlink IPO Getting Nearer?

According to Elon Musk, a Starlink IPO will only be a reality when the project has a smooth financial situation with positive, predictable cash flow. Since that’s not the case yet, Musk expects 2 or 3 more years until Starlink opens its doors to public trading. There is rumours that they may list on the NASDAQ, LSE and even a hint at an additional Starlink IPO Australia (ASX) also, but these are only rumours at this stage.

View The Starlink Pre-IPO Brochure

The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions. We hold no stock or interests in any of the Companies discussed on this website/app.

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