Tesla CEO Elon Musk may likely take Starlink satellite internet service public in a few years

Elon Musk said on Monday that the SpaceX was considering taking its satellite internet service Starlink public in ‘several years’.

“We will probably IPO Starlink, but only several years in the future when revenue growth is smooth & predictable,” he said in a tweet. “Public market does not like erratic cash flow haha.”

This wouldn’t be the first time Musk is mentioning the possibility of taking Starlink public. The SpaceX management previously discussed the matter as Gwynne Shotwell, company president reportedly told a group of investors in February that Starlink is a business fit enough to go public. She also said there would be a spinoff.

In March, Musk countered the idea saying that SpaceX wasn’t planning to have a Starlink IPO anytime soon. Rather, the focus for Starlink was “to be in the ‘not bankrupt’ category,” citing some companies that failed in building satellite internet networks two decades ago.

Through satellite, SpaceX hopes to achieve the goal of building an interconnected internet satellite network, called “constellation”. This network will boost high-speed internet across the planet. SpaceX plans to have 11,943 satellites mounted close to the satellite, which consists of the full Starlink network.

According to Musk last year, Starlink is a strategic channel for “SpaceX to generate revenue that can be use dot develop more and more advanced rockets and spaceships.” He also estimated Starlink to bring in a yearly revenue of $30 billion, or 10 times the highest annual revenue SpaceX expects from its main rocket business.

So far, SpaceX has launched over 700 Starlink satellites with more to be launched in the coming years. Also, the company is currently setting up a system of ground stations and user terminals, through which consumers can be directly connected to its network.

In July, SpaceX told FCC that it is building 120 satellites per month and thousands of small terminals that consumers will use to directly connect to the network. The company also said that it was already getting “extraordinary demand” from customers with nearly “700,000 individuals” across the United States who have indicated their interest in the company’s coming service.

SpaceX has also dedicated a lot of time to developing its satellite internet network by conducting a series of beta tests. The company recently said the test results have shown that its network’s internet speeds are strong enough to stream movies and play online video games. Further tests are being made to measure Starlink’s latency and download speed, which are the key requirements for internet service providers.