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The SpaceX business helping to fund Elon Musk's biggest bets is taking a swing of its own just in time for earnings.
The SpaceX business helping to fund Elon Musk's biggest bets is taking a swing of its own just in time for earnings.
SpaceX reports earnings after the bell today, and Musk's goal of turning Starlink into a major mobile carrier is expected to be a focus.
Taking on Verizon, AT&T, and T-Mobile is a huge endeavor. And it requires significant investment from a company that already has a long list of expensive bets.
As a bit of a refresher, SpaceX is made up of three key parts: connectivity (Starlink), space (reusable rockets like Starship), and AI (Grok, X, and data centers). Among the three, connectivity is the only one generating an operating profit.
That makes it incredibly valuable not only as a stand-alone business but as a way to offset the expensive investments made by SpaceX's space and AI segments.
Turning Starlink into a mobile carrier complicates that arrangement. To offer service in more densely populated areas, SpaceX will need to launch more satellites into space and establish a ground footprint.
How much SpaceX plans to set aside for that buildout and the impact it'll have on the bottom line are key questions analysts will have.
Musk is no stranger to talking a big game. He recently said SpaceX could one day be worth more than Earth's economy.
He's backed it up by accomplishing things others thought were impossible, like self-landing rockets. Just don't expect him to hit his self-imposed deadlines. (Case in point: Tesla Roadster, which has faced numerous delays and is now targeting production in 2028.)
There's less at stake when you're starting from scratch. But with Starlink, it's also about Musk avoiding turning his cash cow into another capital drain.
According to another Musk proclamation, a lot of us will have a vested interest in SpaceX's success.
Early Monday morning, Musk said he'll give one of his SpaceX shares to every kid in America next year.
"This will be the first of many," he added.
Details on how that would work weren't clear, but many people immediately thought of the recently launched Trump Accounts.
President Donald Trump predicted Musk would donate SpaceX stock to the accounts. And SpaceX president Gwynne Shotwell already said she'd gift a share of her company stock to Trump Accounts.
If that's how the shares are distributed, it's an example of the complexities the Trump Accounts can pose for some parents. Certain jobs, like those in financial services, have restrictions around the types of investments you can hold due to compliance reasons.