Chief Executive Officer of Tesla and SpaceX Elon Musk has announced via tweet that Starlink, SpaceX’s satellite internet wing will have its Initial Public Offering (IPO) when its cash flow is reasonably predictable.
The CEO revealed that it would hurt the company if it went public sooner than when it had a stable cash flow or when its cash flow could be predicted. He mentioned this in response to a question asked by another user on Twitter. The user wanted to know if Starlink would have its Initial Public Offering (IPO) any time soon.
“Any thoughts on Starlink IPO we would love to invest in the future. Any thoughts on first dibs for Tesla retail investors?” the user asked. Elon Musk responded that “Going public sooner than that would be painful. Will do my best to give long-term Tesla shareholders preference”.
The President of SpaceX, Gwynn Shotwel first threw intimations about Starlink having an IPO last year.
At least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful. Will do my best to give long-term Tesla shareholders preference.
— Elon Musk (@elonmusk) June 24, 2021
SpaceX’s biggest aim is providing satellite internet access globally and the company has already started taking actions towards bringing that to reality. On Tuesday, President Gwynn Shotwel said that the company expects to be able to provide continuous global coverage by September this year if all regulatory approvals are acquired. She also mentioned that about 1,800 satellites have already been deployed.
The Redmond, Washington-based company plans on providing, with its network of satellites in low-earth orbit, fast internet speeds to everyone in the world. The company has already started the process of acquiring regulatory approvals, and recently discussed procuring licenses to be able to launch its satellite internet services in Nigeria with the Nigeria Communications Commission (NCC).
Elon Musk has previously mentioned that his satellite internet company Starlink will be an important source of funding his bigger plans of developing the Starship rocket, with which he plans to take people who are willing to pay to the moon, which is also a step in trying to colonize Mars.
Although Starlink has not announced an Initial Public Offering (IPO), the question by the Twitter user shows that an IPO is already being anticipated and that people are already interested in investing in the company.