According to CNBC, Gwynne Shotwell announced earlier this year that Starlink, a global communication network built by Elon Musk’s company SpaceX, had positive cash flow in the first quarter of 2022, and the entire company allegedly achieved profitability in the first quarter of 2023. Musk expressed gratitude to his team for their work and stated that Starlink had reached the breakeven point.
In light of recent conflicts, the Israeli Minister of Communication, Shlomo Karhi, expressed concern about the potential use of Starlink systems by Hamas for their terrorist activities. He emphasized Israel’s determination to prevent such usage and alluded to a possible condition for the transfer of these systems, linking it to the release of Israeli hostages held by Hamas. Karhi stated, “We will employ all possible means to fight against it. Hamas is using these Starlink systems for their terrorist purposes. There is no doubt about it. We know it, and Musk knows it. Hamas is like ISIS. Maybe Musk would be willing to consider handing over these systems if our kidnapped children, sons, daughters, and seniors were released. All of them!”
Starlink is a global communication network being developed by Musk’s company, with over 5,000 satellites already launched. The service recently surpassed two million subscribers. SpaceX’s CEO has expanded the company’s reach into various other markets, including national security, enterprises, mobility, and the aviation industry, disrupting the satellite communication sector. As a result, the company’s valuation has risen to $150 billion, and Starlink is seen as a key economic driver for SpaceX’s goals.
Musk had previously acknowledged the financial challenges of making Starlink profitable, stating that it required overcoming significant negative cash flows. However, the recent announcement indicates that the company has achieved this milestone and is moving towards sustained profitability.