Musk Denies Starlink Phone, Confirms Other Plans

Elon Musk denies SpaceX phone rumors as Starlink drives revenue ahead of potential massive IPO this year.

  • Elon Musk denied SpaceX is developing a phone, contradicting recent rumors.
  • The Starlink division generated roughly 50% to 80% of the company’s 2023 revenue, which was between $15 billion and $16 billion.
  • SpaceX is reportedly planning its IPO this year, potentially at a $1.25 trillion valuation.
  • Retail investor sentiment on Stocktwits for SPACEX is currently labeled ‘bullish’.

On Thursday, SpaceX CEO Elon Musk directly refuted a Reuters report from earlier that day, which suggested the company had multiple expansion plans for its Starlink satellite internet business, including a smartphone, direct-to-device internet, and a space-tracking service. Musk responded on his social media platform, X, stating simply, “We are not developing a phone.” This clarification follows his January comment that a Starlink phone was “not out of the question at some point.”

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The original report, citing three sources, indicated the mobile device would connect to the Starlink satellite constellation and potentially rival existing smartphones. Details on the device’s design or timeline were reportedly unclear. Meanwhile, Reuters noted that Starlink itself was a major revenue driver last year, accounting for a significant portion of SpaceX’s overall financial haul.

The news arrives against a backdrop of intense speculation regarding a potential public offering for the rocket company. SpaceX has been actively exploring an initial public offering, with The Wall Street Journal reporting this week that advisers are aiming for a listing as soon as this year that could raise $50 billion. Adding to the corporate maneuvers, SpaceX recently announced it would acquire Musk’s Artificial Intelligence startup, xAI, a move Bloomberg reports would create a combined entity valued at $1.25 trillion. Consequently, investor interest remains high, with sentiment around the stock symbol “SPACEX” trending bullish on the retail trading platform Stocktwits at the time of writing.

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