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Musk says Starlink to go public once cash flow is more predictable

Published 06/23/2021, 11:14 PM
Updated 06/24/2021, 07:36 AM
© Reuters. FILE PHOTO: SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla's gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021. REUTERS/Michele Tantussi/File Photo

(Reuters) - Tesla (NASDAQ:TSLA) Inc Chief Executive Officer Elon Musk will list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, the billionaire entrepreneur said late on Wednesday.

"Going public sooner than that would be very painful," Musk said in a tweet. "Will do my best to give long-term Tesla shareholders preference."

He was responding to a question on Twitter, where a user asked: "Any thoughts on Starlink IPO we would love to invest in the future. Any thoughts on first dibs for Tesla retail investors?"

Last year, SpaceX President Gwynne Shotwell floated the idea of spinning off Starlink for an initial public offering.

Starlink, a planned network of tens of thousands of satellites in low-earth orbit, aims to offer fast internet speeds globally.

Musk had said earlier that Starlink, currently based in Redmond, Washington, will be a crucial source of funding for his broader plans like developing the Starship rocket to fly paying customers to the moon and eventually trying to colonize Mars.

Latest comments

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No, SpaceX is a separate private company that Elon owns 50%+ and controls 75%. Starlink is a entity of SpaceX, not Tesla. I think there may be confusion by retail investors of Tesla who thinks they are investing in SpaceX by buying Tesla but not the case.
company X is building, Tesla, Starlink, Neuralink, Space X. Starlink IPO is just the first step
If Starlink goes public, investors need to price out that valuation from Tesla’s SP…
I agree with a lot of your comments but you missed the mark on this one. Anyone valuing Tesla with Space X/Starlink in their model does so at their own peril: there is no $TSLA valuation compression to come from the Starlink IPO: separate company being spun out of a privately held one. Completely independent of Tesla’s operations and future cash flows.
And yes, Alphabet is the parent company to the separate subsidiaries of Google and Youtube. If you take a look at their financials you will see them reported separately. And don’t you worry: by the time the antitrust lawyers get done with them you will be able to invest in them individually.
 But Starlink is NOT part of Tesla... so there is no value from Starlink in the Tesla stock. Maybe in some hopeful investors minds, but not in reality.
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