Elon Musk Set To Be World’s First Trillionaire Thanks To Starlink
To implement Starlink, the world’s most advanced broadband internet infrastructure, which is now under development, Elon Musk is putting his SpaceX experience in creating rockets and spacecraft to work. On Thursday of last week, SpaceX successfully launched 48 Starlink satellites into orbit off the coast of Florida. This was the 27th successful launch for Musk’s business in 2021, setting a new record.
Because of the success of Tesla Inc., Elon Musk has already surpassed Bill Gates as the wealthiest person on the planet. However, according to a Morgan Stanley analyst, it will be SpaceX, rather not the much-hyped electric-car manufacturer, that will propel him to trillionaire status. The private space-exploration company, according to Morgan Stanley’s Adam Jonas, “is challenging any preconceived notions of what was possible and the time frame possible, in terms of rockets, launch vehicles, and supporting infrastructure,” in a note titled “SpaceX Escape Velocity… Who Can Catch Them?” on Tuesday.
According to the Bloomberg Billionaires Index, Musk’s entire net worth, which stands at $241.4 billion at writing, is less than 17 percent of his total net value of SpaceX. Following a secondary share sale earlier this month, the firm was valued at $100 billion, making it the most valuable corporation globally. Musk now has control over more than a third of all operational satellites in orbit due to SpaceX surpassing its record for the number of rocket launches in a single calendar year.
Research released in October by Morgan Stanley found that Starlink has the potential to increase the fortune of the world’s richest man even more. Starlink’s technology breakthroughs were primarily responsible for the $100 billion value assigned on SpaceX by the evaluation. SpaceX’s Starlink LEO satellite communications business, which has accomplished a series of critical milestones in recent months, is the most significant contributor to the company’s anticipated $100 billion base case value ($200 billion bull case), according to the research.
What precisely is the Starlink system?
Customers all around the globe may benefit from Starlink’s high-speed broadband internet service. According to the company’s website, “Starlink” makes use of current satellites in a low orbit to enable high data rate activities such as video chats, online gaming, streaming, and other such activities that were previously unattainable with satellite internet. When utilizing Starlink Internet service, users may expect download speeds between 100 Mb/s and 200 Mb/s and latency as low as 20ms in most locations.
On the first day of the month, a live satellite orbit visualization was captured on December 1 in 2021. CelesTrak provided this photo. As a result of the unusual string-like design of the Starlink satellites, there have been several reports of UFO sightings in recent years. Satellites in ‘constellations’ are launched into low-Earth-orbiting orbits around the globe using SpaceX rockets.
As the only corporation in the world to hold an orbital-class reusable rocket, SpaceX has vast experience with both spacecraft and on-orbit operations. According to Morgan Stanley, the symbiotic connection between SpaceX rockets and Starlink satellites will finally make Musk a trillionaire.
Because of the advancements in SpaceX rocket technology, they can now transport larger and more frequent payloads of Starlink satellites on their missions. Growing demand for Starlink satellites across the globe results in more money being funneled back into the SpaceX rocket programs.
NASA provides additional technical and financial support to SpaceX to launch many satellites into orbit and create its presence in low Earth orbit. According to Florida Today, Starlink presently has more than 1,700 internet-beaming satellites orbiting the Earth, representing a considerable increase over the previous year.
People may buy Starlink Kits in advance of their arrival, including a terminal (which is required to connect to the satellite that delivers internet access) that they will install in their own homes. While the Starlink Kit is priced at $499, the internet service would be $99 per month, significant savings.
According to Morgan Stanley, even though SpaceX now incurs over $2,000 in expenses per terminal, the company wants to scale up and eventually cut terminal pricing to $250 for consumers. Even though Musk’s Starlink network would provide “near-global coverage of the inhabited earth,” the network is primarily focused on rural and isolated places.
The Pew Research Center reported in February 2021 that broadband internet is still inaccessible in many parts of the world, with just 72 percent of residents in rural areas of the United States having access to a broadband connection at their point of residence. According to the report, elderly people, ethnic minorities, and ‘those with lower levels of education and financial resources are also less likely to have access to a high-speed internet connection at home.
As reported by CNET, given the high cost of establishing fiber infrastructure in rural areas, the present state of SpaceX’s rocket technology makes sending satellites into space a more efficient manner of giving internet connection to individuals who live in rural areas.
Specifically, according to a Morgan Stanley research report, the company’s capacity to obtain considerable amounts of funding at affordable rates would be enhanced as a result of the revenue produced by Starlink. This may be used to assist the continued development of more complex launches, such as Starship, a rocket that Musk thinks has the capacity to one day send people to Mars. More than 1,750 Starlink satellites are now in operation. SpaceX has filed documents to the International Space Station (ISS) to create a constellation of satellites with a total capacity of 42,000 satellites. SpaceX expects to launch as many as five rockets before the end of the year, with the next one scheduled for December 9.
Nasa gave SpaceX a multi-billion-dollar contract earlier this year, beating over Blue Origin, founded by Amazon founder Jeff Bezos. For a brief while in January 2021, Musk briefly eclipsed Bezos as the world’s richest person, and he has held that position ever since.
The Bloomberg Billionaires Index estimates that Musk’s net worth is less than 17 percent of his total assets at the moment, but his firm, SpaceX, has the potential to turn him into a trillionaire in the future.