Space Exploration Technologies Corp. (NASDAQ:SPCX) CEO Elon Musk said Tuesday that people are underestimating Starlink’s long-term potential and believes the satellite internet network could eventually deliver a majority of the world’s internet traffic in less than a decade.
‘People are Really Underestimating Starlink’
Musk said Starlink’s growth potential remains widely overlooked despite its rapid expansion, describing the satellite network as one of SpaceX’s biggest long-term opportunities.
“I think people are really underestimating Starlink here. This is a big deal,” Musk said during the company’s first public earnings call since its June IPO.
Starlink to Be Global Internet Backbone
Starlink’s opportunity extends far beyond its current subscriber base, Musk said, adding that the business has the potential to become a foundational piece of global internet infrastructure rather than just a satellite broadband provider.
He said it was “not out of the question” that Starlink would eventually deliver a majority of the world’s internet traffic in markets where it is permitted to operate, calling the prospect achievable in “less than 10 years.”
President and COO Gwynne Shotwell told analysts on the call that SpaceX’s next-generation Starlink Mobile network could be “100 times better” than its current service, supported by new EchoStar spectrum and upgraded satellites.
The company also expects AI, humanoid robots, and autonomous vehicles to drive a sharp increase in demand for network bandwidth, while next-generation Starlink V3 satellites are expected to deliver roughly 10 times the communications capacity of the current generation.
Second-Quarter Beats Wall Street Estimates
SpaceX posted second-quarter revenue of $7.81 billion, up 92% year over year and ahead of analysts’ estimates of $6.93 billion, according to Benzinga Pro. It reported a loss of 9 cents per share, beating expectations for a loss of 24 cents.
Management expects to reach a $100 billion annualized revenue run rate by the end of 2026 and forecasts $1 trillion in annual revenue by 2030, a year earlier than previously forecast, with a “non-zero chance” of reaching that milestone in 2029.
Price Action: SPCX closed 9.43% higher on Tuesday at $125.33 and fell 7.46% to $115.98 in after-hours trading on the announcement of its first public earnings report since its IPO in June.
Benzinga edge rankings indicate SPCX has a negative price trend across the short, medium, and long term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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