One of Elon Musk’s companies is once again at the risk of going bankrupt, could Starlink go under? Musk’s satellite network company Starlink needs up to $30 million to stay afloat.
The Startup first launched in 2020 and has provided internet broadband services to customers from satellites. According to a report by Business Insider, it currently has a presence in at least six countries, with plans to have 42,000 satellites by 2027.
During the early days of Telsa, the car tech company was so close to going bankrupt before it received huge funding from investors. For several years, Telsa posted annual losses in its financial statements.
What could be the reason for Starlink’s liquidity problems? High manufacturing costs, the costs of producing satellite internet terminals.
During a virtual event at the Mobile World Conference, Musk stated that these terminals cost $1,000 each to produce.
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While they manufactured for such high costs, they sold to customers for $500 with an additional $99 monthly subscription Musk mentioned.
Starlink has plans to manufacture next-gen terminals for less. Musk said during the conference “We are working on next-generation terminals that provide the same level of capability but costs a lot less,”
Eventually, these new terminals would cost less than $1,000 to produce and then sell to customers for $300, $250, and lower if the economies allow it.
“If we succeed in not going bankrupt, then that’ll be great, and we can move on from there,” Musk said.
In order to grow massively, Musk announced that Starlink had signed partnerships with two “major country telcos.” The CEO’s recent tweet confirmed Starlink now has 69,420 active users. Despite SpaceX winning $885 million in federal subsidies to grow Starlink, the Startup is still in need of Cash to avoid going under.
History could rewrite itself as it did for Telsa, Investors could come pouring cash into the satellite business.
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