Space Exploration Technologies (NASDAQ: SPCX) has had a turbulent debut as a publicly traded company since its IPO priced at $135 per share.
The stock surged as high as $225 before retreating, and as of the latest trading session it sits just $1 above its IPO price.
Investor sentiment on SpaceX remains sharply divided between those who see enormous long-term upside and those who question its $1.8 trillion valuation.
Bulls point to SpaceX’s leadership in space travel and satellite-based internet services as reasons the stock could deliver outstanding returns over time.
Bears counter that SpaceX remains unprofitable, arguing its financial results do not justify the company’s current market valuation.
Recent news, however, gave the bull camp something to cheer about, centered on the company’s Starlink satellite internet business.
SpaceX recently filed a request with the U.S. Federal Communications Commission to deploy up to 100,000 of its new Gen3 Starlink satellites into very low Earth orbit.
Starlink currently operates just over 10,400 satellites, meaning the proposed constellation would represent a dramatic and unprecedented expansion of the network.
The company is looking to build a satellite network capable of handling the majority of the world’s internet traffic, a goal that reflects its sweeping commercial ambitions.
Deploying satellites at very low Earth orbit, rather than the standard Low Earth Orbit altitudes Starlink currently uses, would further boost internet speeds for customers around the world.
Currently, Starlink offers speeds ranging from 100 Mbps to over 400 Mbps, which lags significantly behind fiber internet providers that can exceed 1,000 Mbps.
Manufacturing 100,000 satellites presents a serious logistical challenge, given that SpaceX’s Redmond, Washington facility produced an average of just 70 satellites per week between December 2025 and April 2026.
At that production rate of roughly 3,640 satellites per year, it would take over 27 years to manufacture the full 100,000-unit constellation without a major capacity expansion.
SpaceX will also need its next-generation Starship rocket, currently still in the flight-test phase, to launch the larger Gen3 satellites, as the existing Falcon 9 can carry only up to 29 of the smaller V2 models per trip.
Regulatory approval from the FCC is another hurdle SpaceX must clear before any part of this ambitious expansion plan can move forward.
Competition in the satellite internet space is also intensifying, and while no rival currently comes close to matching SpaceX’s number of satellites in orbit, that dynamic could shift over time.
The stock may represent a compelling long-term opportunity given the scale of Starlink’s potential, but the risks surrounding manufacturing, logistics, regulation, and competition are real and should not be dismissed.
The view from analysts is that SPCX could be a buy, but only at a meaningfully lower price, making patience the prudent strategy for investors considering a position.
