Elon Musk denies Starlink IPO rumors on social media platform X

Elon Musk, the CEO of SpaceX, denied recent claims suggesting discussions about a potential initial public offering (IPO) for Starlink, SpaceX's satellite internet arm, by 2024. Addressing a Bloomberg News report shared on the social media platform X, Musk labelled the assertion as "false."

NEWS: SpaceX is discussing spinning off Starlink via IPO as soon as 2024 (Bloomberg) pic.twitter.com/y85yDTO0bt

— Teslaconomics (@Teslaconomics) November 15, 2023

False

— Elon Musk (@elonmusk) November 15, 2023

Contrary to speculation surrounding the transfer of Starlink's assets to a wholly-owned subsidiary, purportedly paving the way for a spin-off, Musk clarified that no such plans were in motion. He reiterated his previous stance that Starlink's IPO would materialize only once revenue growth and cash flow achieved stability and predictability.

SpaceX, valued at approximately $150 billion, holds the distinction of being the first private company to transport humans to orbit. Its groundbreaking innovations have propelled competitors like Blue Origin, led by Jeff Bezos, to adapt by leveraging reusable rockets, significantly reducing launch expenses.

Notably, Starlink stands as the world's largest satellite operator. Recent developments include securing a contract to provide free internet services in Mexico until the end of 2026, further solidifying its global presence.

In recent announcements, Musk highlighted Starlink's commitment to providing internet connectivity to internationally recognized aid organizations in Gaza. However, despite significant strides, challenges persist for the satellite internet service provider.

According to a Wall Street Journal report in September, while Starlink experienced substantial revenue growth, reaching $1.4 billion—an over six-fold surge—it fell short of the ambitious targets outlined by Musk. A 2015 company presentation projected revenue of nearly $12 billion and an operating profit of $7 billion by 2022.
The report also highlighted Starlink's slower-than-anticipated customer acquisition pace. By the close of 2022, the unit had accumulated just over a million active subscribers, significantly below earlier expectations.