According to one of Tesla’s most ardent bulls, ARK Invest predicts that SpaceX’s Starlink could generate $20 billion cashflows annually. However, will take years to reach there, and will have to survive its early years.
While Starlink’s predicted future potential is incredible, but the Tesla bull firm also predicts that Starlink’s cash flow will be negative for the first eight years. As the launches of satellites are yet to be made cheaper, the costs of Starlink continue to be the same for some time initially. Starlink satellites can be installed at $499 for antenna and router and a monthly bill of $99. Which is rather costly for some countries located in remote areas or places where the internet is inaccessible.
Starlink satellites are launched through rockets with reusable boosters. Though they managed to finish launching the first orbital shell as per their plan which includes another 4 orbital shells. These orbital shells are arranged all around the globe such that the satellites allow internet accessibility even in every corner of the earth.
According to the research by Cathie Wood-led ARK Invest, Starlink must continue to attract early users initially. As noted by the ARK analyst Sam Korus, “SpaceX’s satellite business could generate more than $20 billion of cash flow annually on a constellation that costs roughly $10 billion to launch, as replacement satellites would launch at much higher utilization rates,”
Further added, “If we are correct, Starlink then would be able to acquire a terrestrial internet provider and minimize latency by routing internet traffic, gaining another competitive edge.”
Elon Musk talked IPO
In June, Elon Musk tweet on Starlink as a different company, which is under SpaceX currently. But said that it would be years before Starlink IPO takes place, till revenue is predictable.
Starlink had a remarkable number of pre-orders all over the world, and the company is said to be preparing to provide services to a million users. By May, more than 500,000 registration took place, even from those countries SpaceX is yet to receive the required permissions. However, as per the research by the asset management company, Starlink should continue to attract users, which is not something that’s predictable. By last month we know that Starlink has 69,420 active users.
Furthermore, the cost of the launches may reduce as Starship starts its orbital launch. As the gigantic spaceship can hold more satellites than the current rocket, Flacon 9. The cost could be reduced, but the details aren’t fully known. Like the cost of the launch with the Starship launch. According to Starlink’s plans, around 4,425 satellites are to be placed around orbit by 2024. Which is currently at more than 1,500 satellites.