Why Did SpaceX Stock Just Pop?
The rumor is true: SpaceX is building a cellphone provider.
Space Exploration Technologies (SPCX) stock surged 4.4% on Monday after The Washington Post revealed that Elon Musk's space company is exploring the possibility of acquiring Boost Mobile or partnering with it to enter the $235 billion wireless market. Despite being rejected by the Big 3 carriers - AT&T, T-Mobile, and Verizon - SpaceX is reportedly in talks with EchoStar, the owner of Boost Mobile, to purchase the company or collaborate on a new cellphone service utilizing Boost's network.
EchoStar, in turn, leases network access from AT&T and T-Mobile, two of the companies that previously turned down SpaceX's initial offers. SpaceX recently secured Federal Communications Commission approval to launch 15,000 direct-to-cell communication satellites, significantly increasing its capacity to connect mobile devices worldwide.
Additionally, the company has invested $8 billion to acquire U.S. spectrum licenses from Grain Management. With these developments, SpaceX seems poised to become America's fourth major mobile communications provider, potentially joining forces with the Big 3 carriers in the near future.
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