SpaceX sets sights on the $1.6 trillion telecom market

SpaceX is weighing a plan to sell its own Starlink-branded mobile phone service to people across the United States, a step that would pit Elon Musk’s company against the country’s biggest phone carriers.

The Financial Times reported on Friday that the company is also thinking about building its own ground-based wireless network down the line. President and Chief Operating Officer Gwynne Shotwell laid out the idea during SpaceX’s recent IPO roadshow, the paper said, citing four people who knew about the talks.

For Starlink, selling directly to phone customers would be a big change. Right now it works with carriers such as T-Mobile, using its fleet of satellites to fill in gaps where regular networks fall short. The new plan would instead have SpaceX sign up customers itself and hand them mobile contracts, going up against Verizon, AT&T and T-Mobile.

SpaceX first spelled out its wireless hopes in the IPO filing it submitted last month, describing Starlink Mobile as a rival to Verizon, AT&T and others.

Could SpaceX buy T-Mobile?

TD Cowen analyst Gregory Williams wrote on Thursday that T-Mobile would be the “clear choice” for SpaceX if it cannot reach a wholesale network deal, or if Musk’s firm would rather own a wireless business outright. He pointed to the existing tie between the two companies through Starlink. “Another thought would be [for SpaceX] to acquire AT&T,” Williams suggested.

SpaceX could cover the cost of a T-Mobile deal by selling more of its own shares, Williams said, adding that it could do so without much harm to the stakes current shareholders hold. He also raised the chance of SpaceX buying a cable TV company, noting that both Comcast and Charter Communications have wholesale network agreements with Verizon, which could make them appealing.

The numbers help explain why connectivity is the focus. Starlink brought in 69% of SpaceX’s revenue through the first quarter, and the connectivity arm, which includes Starlink Mobile, was the only part of the company that turned a profit. The space unit lost $619 million over that stretch, and the AI arm lost $2.5 billion.

Some watchers think a different deal could come first. Wedbush Securities analyst Dan Ives said his firm put the odds at 80% or higher that SpaceX and Tesla merge by 2027, writing that the “groundwork [was] already in place for both operations to become one operation.”

Shotwell, speaking to CNBC before the trading debut this month, said joining SpaceX and Tesla “might make Elon’s life a little easier.” She said there was “no question that there are synergies between Tesla and SpaceX in our futures,” but added that for now she was “focused on keeping the lights on here.”

In its filing, SpaceX put the possible market for Starlink Mobile at $740 billion and said it would look to “expand our Starlink Mobile offering.”

Back in January, when a user on X asked whether a “Starlink phone” might appear, Musk said it was “not out of the question at some point,” though by February he said the company was not building one.

SPCX has been a wild ride

The IPO had set records surpassing Amazon and Microsoft in marketvalue as reported by Cryptopolitan previously. However, the highs were shortlived and faced a 16% slump before settling in into smaller daily action.

Small investors poured in. SpaceX “embodies many of the qualities that have historically resonated with retail investors,” said Viraj Patel of Vanda, pointing to its big vision, famous founder and heavy media coverage. Over the first five sessions, they bought a net $405 million in shares, which Vanda called the strongest retail IPO debut in recent history.

Musk, true to form, has talked up huge growth, saying on June 14 the company “might be able to reach approximately” $1 trillion in revenue by 2030.

That is far above the $18.7 billion it made in 2025, a year with a $4.9 billion net loss, followed by a $4.28 billion loss in the first quarter. Even so, few have bet against it. Michael Burry of “The Big Short” said on June 16 he holds no position, calling the options too costly while still questioning the near $3 trillion valuation.