Billionaire Elon Musk's New Space Business Is Mind-Blowingly Profitable
Two months ago, Bloomberg put SpaceX in its gunsights: Contrary to CEO Elon Musk's boasts, argued the news agency, claims that the company's Starlink satellite internet subsidiary is already profitable seem "suspect." Citing "persons familiar" with SpaceX's finances, Bloomberg argued that SpaceX is losing "hundreds" of dollars on every Starlink ground terminal it sells.
Bloomberg might even be right about that one part of Starlink's business, but it doesn't matter.
Every ground terminal Starlink sells is analogous to a razor -- a piece of equipment that needs to be put in a customer's hands to then sell them blades (or satellite internet service, in the Starlink context) for years after making that first, unprofitable sale.
Source Fool.com
