SpaceX shares rise after report of talks tied to Boost Mobile

Stock moves higher after the report

The Motley Fool reports that Space Exploration Technologies Corp. stock was up 3.2% at 12:55 p.m. ET on Monday, Nov. 2. The article says the move came after a report that SpaceX is looking for another way into the wireless mobile business. It also notes that the S&P 500 was up 0.2% and the Nasdaq Composite was up 0.3% at the same time.

Talks with EchoStar and Boost Mobile

According to The Washington Post, SpaceX has spent the past few months in discussions with EchoStar, which owns the discount mobile brand Boost Mobile. The reported talks involve either using EchoStar’s network or buying the Boost brand. The article says this would support SpaceX’s effort to launch Starlink Mobile.

What Starlink Mobile would be for

The Motley Fool says Starlink Mobile would be a satellite-and-ground network. It reports that SpaceX hopes the service could compete with the largest wireless carriers, including AT&T, T-Mobile, and Verizon. The article says EchoStar had 7.4 million wireless subscribers at the end of its most recent quarter, which could give SpaceX an existing base to build on.

Obstacles to any deal

The article also lays out possible problems. It says Boost Mobile has no towers of its own and instead buys network capacity from AT&T and T-Mobile. That may matter because the article says SpaceX has already contacted AT&T, T-Mobile, and Verizon and was turned down.

Why investors reacted

The Motley Fool says the possibility of a deal was enough to lift the stock. It says Starlink Mobile could expand SpaceX’s customer base and support the growth the company has said it plans to deliver, but the article also emphasizes that major hurdles remain.