Musk says Starlink to go public once cash flow is more predictable

[June 24, 2021]  (Reuters) - Tesla Inc Chief Executive Officer Elon Musk will list SpaceX's space internet venture, Starlink, when its cash flow is reasonably predictable, the billionaire entrepreneur said late on Wednesday.

SpaceX founder and Tesla CEO Elon Musk looks on as he visits the construction site of Tesla's gigafactory in Gruenheide, near Berlin, Germany, May 17, 2021. REUTERS/Michele Tantussi/File Photo

"Going public sooner than that would be very painful," Musk said in a tweet. "Will do my best to give long-term Tesla shareholders preference."

He was responding to a question on Twitter, where a user asked: "Any thoughts on Starlink IPO we would love to invest in the future. Any thoughts on first dibs for Tesla retail investors?"

Last year, SpaceX President Gwynne Shotwell floated the idea of spinning off Starlink for an initial public offering.

Starlink, a planned network of tens of thousands of satellites in low-earth orbit, aims to offer fast internet speeds globally.

Musk had said earlier that Starlink, currently based in Redmond, Washington, will be a crucial source of funding for his broader plans like developing the Starship rocket to fly paying customers to the moon and eventually trying to colonize Mars.

(Reporting by Akriti Sharma in Bengaluru; Editing by Subhranshu Sahu)

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