Bota Posted on 2024-12-28 13:32:00

SpaceX "sees from the stars"! - The Starlink satellite network could be worth USD 1 trillion in 2030

From Kristi Ceta

SpaceX "sees from the stars"! - The Starlink satellite network could

Rocket maker SpaceX's $350 billion valuation makes it among the globe's most valuable private startups. That's still a fraction of the value of Elon Musk's Tesla electric car company, which is worth $1 trillion. In 2025, however, it will become clear that earthly ambitions are no match for the stars.

SpaceX sums up Musk's philosophy: "do something different, then lower costs to drive away the competition." The key is Starlink, the company's extensive satellite network. His success is twofold. First, by building larger rockets that can be reused, the cost of launch drops rapidly. Second, Starlink's superior performance against rivals provides a revenue stream that justifies more launches.

The company has about 7,000 satellites orbiting Earth and is adding about 60 a week. From 1965 to the early 2010s, there was essentially no increase in man-made objects launched into space. Starlink reversed this trajectory.

SpaceX accounted for over 85% of all orbital payloads in the first quarter of 2024, BryceTech estimates. This rapidly scaling vertical integration, including rockets, satellites and user terminals, puts potential rivals like Amazon several steps behind.

Tesla faces stiff competition from upstarts like China's BYD and cheaper, quality fossil fuel cars. Starlink has only 5 million users but is available in 114 countries. It is adding cell service and has plenty of capacity. Musk's ties to President-elect Donald Trump could help him get previously unavailable subsidies, such as $42 billion for rural broadband in the US.

Starlink could be worth over $1 trillion by the end of the decade if its growth continues as expected. This does not include the value of SpaceX's other businesses such as rockets.

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