Key insights
- The author expresses a bearish outlook on SpaceX and its integration with Tesla, citing regulatory hurdles in international markets like India, high operational costs, and limited growth potential in satellite internet. The piece questions the business case, highlighting lower bandwidth compared to terrestrial options and the unreliability of satellite technology in adverse weather. The author views these ventures as 'failed moonshots' potentially dragging down Tesla's valuation.
India just denied entry into their market, as does many countries because of two really big problems. countries like to control their citizens access to the internet; having access to sky internet overrides years of fibre installation and shortcuts years of investment of local companies.
in other words, a technology that only works when it's not raining, and skips all the regulatory investments of local coherts isn't going to easily expand into many territories.
so what else is left?
xai is losing money hand over fist
satellite internet doesn't have the explosive curve investors are looking for
rockets account for less than $14B in EBITDA profit
x is a joke.
folding in the wasted investments in building up Tesla for demand of a product that has flat lined
I'm not seeing where the business case is.
having servers in space is not nearly as lucrative as it sounds and the bandwidth is a fraction of local installations. in fact the bandwidth can reach terrabit levels terrestrially. about 1k times faster than orbital bandwidth.
did I mention clouds. actual physical clouds.
spacex is looking like a hotpot of failed moonshots hobbled together by social marketing. adding Tesla into this heap will only make the stink of this pile stronger.