Elon Musk, the owner of SpaceX and Tesla, recently announced on social media that the company’s Starlink satellite internet service has achieved break-even cash flow. This is a significant milestone that indicates the business is moving in the right direction.
Starlink has faced challenges since its launch, falling short of its initial revenue and profit predictions. While the company had anticipated reaching $12 billion in revenue and $7 billion in operating profit by 2015, its actual revenue at the end of 2022 totaled $1.4 billion. Despite this, Musk highlighted that Starlink represents a majority of all active satellites and has plans to launch the majority of all satellites cumulatively by next year.
The service has also experienced a gap between its projected and actual number of users. By the end of 2022, Starlink had expected to have 20 million customers but had only amassed one million. However, in the last nine months, Starlink has added approximately one million customers.
To expand its customer base, SpaceX recently made Starlink available to anyone in the U.S., eliminating the waitlist. While this wider availability may drive subscriptions, potential customers may still be hesitant due to the high price tag associated with Starlink.
This latest announcement from Elon Musk regarding Starlink’s break-even cash flow is a positive step forward for the satellite internet service. It demonstrates progress and potential for growth in the future.