Beaming cheap internet from space has bankrupted other companies. Here’s how SpaceX plans to survive
CNNNew York CNN Business — Elon Musk has tepid optimism that his rocket company SpaceX will be the company that delivers cheap satellite-based internet to the masses — finally turning a longtime industry fantasy into reality. Here’s what is known: Musk said last week that SpaceX has “sufficient” funds to get Starlink off the ground -— “but of course if things go wrong and there are unexpected issues, we’d need to raise more capital.” SpaceX brought in nearly $1 billion in two recent funding rounds, bringing the company to a $30 billion-plus valuation. “With any company that’s pursuing such ambitious goals, really making sure investors continue to have confidence in the ability of the company to meet those goals is super important.” The overall health of SpaceX also depends on a big revenue boost for Starlink. Musk said last week that revenue from launch contracts “taps out around $3 billion per year.” Musk has long anticipated that Starlink will bring in far more money, providing a wellspring of funds for Starship rocket development and reaching Musk’s far-out dream of sending people to live on Mars. Shagun Sachdeva, an analyst at Northern Sky Research who studied Starlink’s 10-year outlook, said SpaceX will be “nowhere close” to reaching $30 billion in annual revenue during that time frame.