SpaceX CEO Elon Musk has announced that the company’s Starlink satellite internet business has achieved breakeven cash flow. Musk shared the news on his social media platform, X (formerly known as Twitter), and commended the team for their excellent work.
While Musk did not provide specific details about the milestone, earlier this year, SpaceX’s President and Chief Operating Officer Gwynne Shotwell mentioned that Starlink had a cash flow positive quarter in 2022. Additionally, reports indicated that the overall SpaceX company turned a profit in the first quarter of 2023.
Starlink, SpaceX’s global communications network, has been a significant economic driver for the company and has played a crucial role in SpaceX’s impressive valuation, which has soared to about $150 billion. Musk had previously emphasised the financial challenges Starlink had to overcome, stating that it needed to navigate “through a deep chasm of negative cash flow.”
Musk has mentioned the possibility of spinning off Starlink and taking it public through an initial public offering (IPO) once the business is in a more stable situation. However, the exact timing of a Starlink IPO remains uncertain, as Musk previously suggested that it might not occur until 2025 or later.
Starlink, which began offering its services approximately three years ago, initially targeted the consumer market. It has since expanded its reach, amassing over two million subscribers and entering various sectors, including national security, enterprise, mobility, maritime, and aviation. The service has disrupted the traditional satellite communications industry.
Recently, SpaceX announced the opening of a new satellite antenna manufacturing facility in Bastrop, Texas, near Austin, as part of its ongoing efforts to expand and enhance the Starlink network.