Fri. Sep 29th, 2023
SpaceX’s Starlink Generates $1.4 Billion in Revenue in 2022

SpaceX’s Starlink satellite internet service reportedly generated $1.4 billion in revenue in 2022, a notable increase from the $222 million it made in the previous year. Despite the significant growth, this fell short of CEO Elon Musk’s projections made in 2015, where he predicted a $7 billion operating profit in 2022 and nearly $12 billion in revenue.

In the first three months of 2023, SpaceX reported a profit of $55 million and revenue of $1.5 billion, marking its first profit after two years of financial losses. However, it is still a departure from Musk’s earlier forecast.

The report also indicates that Starlink has faced challenges in signing up customers. By the end of 2022, it had approximately one million active subscribers, far less than the 20 million subscribers Musk had anticipated.

Starlink’s credibility was further questioned last year when the Federal Communications Commission (FCC) revoked the grant funds it had initially awarded to the company. The FCC claimed that Starlink had failed to meet program requirements, and the funds were better spent on other reliable and affordable broadband options.

Amidst these developments, Musk has faced criticism for refusing to provide Starlink satellites to Crimea to support Ukraine’s war efforts. A recent biography about Musk revealed that he had disabled Starlink satellites in Crimea as Ukraine prepared to launch a drone strike on Russia’s fleet. Musk justified his decision by stating that providing the satellites would make SpaceX complicit in an act of war.

Currently, SpaceX operates 4,200 Starlink satellites in low-Earth orbit and provides services in 60 countries. The company is also expanding its reach by offering user kits at Home Depot and Best Buy. SpaceX aims to increase Starlink’s revenue further by the end of 2023, according to Gwynne Shotwell, the president of SpaceX.