ARK Invest CEO Cathie Wood drew attention to Elon Musk-led SpaceX's latest operational metrics on Sunday, highlighting the company's progress in reducing satellite internet costs through its Starlink program.
What Happened: Wood, popular for leading ARK Innovation ETF (NYSE:ARKK) commented as SpaceX prepares to launch 10 model Starlink satellites on its upcoming Starship test flight, scheduled for Jan. 10. The launch marks the first time Starship will carry a payload after six previous test flights.
ARK's Director of Research for Autonomous Technology, Sam Korus, provided context by comparing SpaceX's costs to traditional satellite providers. Viasat Inc's (NASDAQ:VSAT) "Viasat 3 was $650,000 per Gbps," Korus noted on X, formerly Twitter.
His analysis suggests Starlink's cost per subscriber could drop to approximately $5 when accounting for launch and satellite expenses.
SpaceX released some provocative metrics last week. Looking forward to more analytical perspective based on Wright's Law from @skorusARK.
— Cathie Wood (@CathieDWood) January 4, 2025
Pretty sure Viasat 3 was $650,000 per Gbps. And that's GEO and up there for the next ~12 years.
— Sam Korus (@skorusARK) January 3, 2025
This cost reduction aligns with Wright's Law, which predicts decreasing production costs as manufacturing experience increases. The trend is particularly significant given SpaceX's planned transition to using Starship for satellite deployment, potentially further reducing launch costs.
Why It Matters: SpaceX's advancement in satellite technology comes as the company maintains its position as the largest holding in ARK's Venture Fund, representing 12.7% of the portfolio. The fund offers retail investors rare access to private space technology investments.
The upcoming Starship test flight aims to demonstrate both payload deployment capabilities and booster recovery at the launch pad in Starbase, Texas. This development is crucial for NASA's lunar missions and CEO Musk's broader vision of Mars colonization.
SpaceX's latest reported private market valuation exceeds $250 billion, with shares reportedly trading at $135 in recent tender offers, underscoring investor confidence in the company's satellite internet strategy and broader space transportation goals.
- New York City's Historic Congestion Pricing Starts Sunday, Uber And Lyft Passengers To Pay For Entering Manhattan
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
