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Elon Musk says there are 3 or 4 years left to offer

SpaceX CEO Elon Musk is at the heart of a prototype Rocket Starship at the company’s headquarters in Boca Chican, Texas.

Steve Jurvetson on flickr

Elon Musk told SpaceX staff last week that the company is unlikely to launch its Starlink satellite Internet business until 2025 or later, CNBC has learned, again extending the estimated time for an initial public offering.

“I am not sure when that will happen [IPO] it’s, but maybe it’s going to be like three or four years from now, I don’t know, I’m guessing, ”Musk said at a meeting of private company employees on Thursday, according to an audio recording obtained by CNBC.

Musk stressed that, as before, the Starlink business must be in a “good navigation state” with a “good forecast.” At the moment, “I think it can make a lot of sense to rotate as a public company,” said SpaceX CEO.

The recent time lag despite repeated questions from several investors about owning a stake in SpaceX is an action that continues to be privately traded.

Musk launched an offer as soon as this year, according to an email from CNBC to SpaceX staff. An email from Musk in May 2019 stated that “it will probably make sense to make Starlink public in about three years.”

Musk dismissed that calculation, saying in a tweet last year that it would be “at least a few years of reasonably predictable Starlink revenue,” saying “it would be very painful to make it public before that.”

SpaceX did not immediately respond to CNBC’s request for comment on Musk’s remarks.

SpaceX’s Starlink network is designed to provide high-speed Internet anywhere in the world via thousands of low-orbit Earth satellites. The company reported late last month that Starlink now has more than 400,000 subscribers worldwide. SpaceX has so far launched about 2,500 satellites to support the system.

Although SpaceX offers a wide range of Starlink products and services, the base price of $ 110 per month and the latest subscriber numbers of the company suggest annual revenue of more than $ 500 million per year.

A Starlink satellite terminal, also known as an antenna, is set up in front of a motorhome.

SpaceX

Musk warned employees in Thursday’s comments that “they shouldn’t think of putting things in public, for example, as a sure way to wealth.”

“Public markets are volatile” and “if you don’t live up to expectations,” he said.

Musk has often had a conflicting relationship publicly with the regulations of commercial companies. In 2018, it agreed with the Securities and Exchange Commission to pay millions in settlement costs in response to fraudulent orders to take the Tesla electric vehicle manufacturer privately. He is currently fighting Twitter over his proposal to take over the private social media company.

“Being public is definitely an invitation to mine,” he told SpaceX staff on Thursday. “And the stock price is distracting.”

SpaceX continues to raise billions of dollars to develop Starlink and its Starship rockets. The company’s valuation was $ 127 billion in its last round of financing.

Elon Musk says there are 3 or 4 years left to offer

Source link Elon Musk says there are 3 or 4 years left to offer

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