SpaceX CEO Elon Musk Thinks People Underestimate Starlink and That Is a 'Big Deal'

Space Exploration Technologies Corp. CEO Elon Musk said investors are underestimating Starlink’s long-term potential, calling the satellite internet network “a big deal” during SpaceX’s first public earnings call since its June IPO. Musk said Starlink could become foundational global internet infrastructure rather than merely a satellite broadband provider. It is “not out of the question,” he said, for Starlink to deliver a majority of the world’s internet traffic in markets where it is permitted to operate, potentially in less than 10 years. President and COO Gwynne Shotwell said SpaceX’s next-generation Starlink Mobile network could be “100 times better” than its current service, supported by new EchoStar spectrum and upgraded satellites. Next-generation Starlink V3 satellites are expected to provide roughly 10 times the communications capacity of the current generation. Management expects artificial intelligence, humanoid robots and autonomous vehicles to drive a sharp increase in demand for network bandwidth. Those trends could support Starlink’s expansion, although the opportunity depends on capacity deployment, service improvements and regulatory permissions across operating markets. SpaceX reported second-quarter revenue of $7.81 billion, up 92% year over year and ahead of analysts’ estimate of $6.93 billion, according to Benzinga Pro. The company reported a loss of 9 cents per share, narrower than the expected loss of 24 cents. Management expects to reach a $100 billion annualized revenue run rate by the end of 2026. It forecasts $1 trillion in annual revenue by 2030, one year earlier than previously projected, while citing a “non-zero chance” of reaching that milestone in 2029. SPCX closed Tuesday 9.43% higher at $125.33 before falling 7.46% to $115.98 in after-hours trading following the earnings announcement. The contrasting moves highlight investor enthusiasm for the outlook alongside heightened expectations and execution risk.