SpaceX founder Elon Musk said on Thursday he would look to give long-term Tesla Inc TSLA shareholders preference in the Starlink initial public offering as and when that happens.
What Happened: In a tweet response to a query seeking details on the Starlink IPO, Musk said that wouldn't happen until the unit delivers a “reasonably predictable” revenue, which is still a few years away, adding he would do his best to ensure long-term Tesla shareholders get preference.
Musk, who leads Tesla alongside SpaceX, said a public listing before the business attains steady revenue would be “very painful.”
At least a few years before Starlink revenue is reasonably predictable. Going public sooner than that would be very painful. Will do my best to give long-term Tesla shareholders preference.
— Elon Musk (@elonmusk) June 24, 2021
Starlink, which is currently in the beta phase, is a SpaceX venture designed to beam down the internet, especially in remote areas from satellites in orbit to Earth.
See Also: Starlink Begins Taking Preorders, Musk Eyes IPO When Cash Flow Predictable
SpaceX offers the service at $99 a month and an additional $499 one-time cost for the kit that includes a user terminal and Wi-Fi router to connect to the satellites.
In May this year, the company claimed it had secured more than 500,000 orders for its super-fast, satellite-based internet service Starlink.
Why It Matters: Musk told reporters in 2019 that Starlink could generate $30 billion a year in revenue, making the company a hot target for a potential IPO.
Starlink has launched over 1,000 satellites and hopes to have 4,425 in orbit by 2024. The FCC has approved 11,943 satellites to be launched by Starlink.
Musk had in September last year said retail investors would get top priority in the Starlink IPO.
Interest in the space-based internet network is on the rise as more companies are looking into the capabilities. Defense contractor Lockheed Martin Corp’s LMT space unit has tied up with Omnispace LLC to roll out something similar and in direct competition with SpaceX.
Price Action: Tesla shares closed 5.3% higher at $656.57 on Wednesday.
See also: HOW TO BUY STARLINK IPO STOCK
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