This Could Be a Big Reason Why SpaceX Is Delaying Its Starlink IPO
There is a lot of interest in investing in SpaceX, but an IPO making the company available to everyday investors is likely still a long way off. CEO Elon Musk has said SpaceX internet service provider subsidiary Starlink is much closer to going public, but not until after the company can "predict cash flow reasonably well."
As Starlink is in the very early stages of rolling out service, don't count on an IPO in 2021. While that may be frustrating, the decision to wait could be a very good thing for the average investor.
Running a satellite communications company (or satcom) is an expensive endeavor. For most companies, launching satellites into orbit to create a "constellation" to support voice and data services requires hiring a contractor to get the hardware into space. Even for SpaceX, which is vertically integrated with its own rocket launching capabilities, building out and operating Starlink satellites isn't cheap. Musk said as much on Twitter in February:
Source Fool.com
