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Musk sets ambitious goals, executives cautiously adjust
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- DeepHorus
On Tuesday local time, SpaceX held its first post-IPO earnings call. CEO Elon Musk once again showcased his grand vision, while other executives continually offered cautious corrections, presenting a more pragmatic picture to investors. The call foreshadowed that investors in this rocket launch, computing power rental, and satellite communications company may frequently witness similar scenes going forward.
The call continued Musk's style of many years: he was responsible for throwing out bold, even exaggerated goals, while other executives packaged these visions into statements more palatable to investors. This is quite similar to Tesla. As TechCrunch's previous analysis showed, in recent years Musk has increasingly focused on futuristic concepts such as AI and robotics, while other executives discuss actual business operations more.
One of Musk's most notable remarks was predicting that Starlink satellite internet service would carry the majority of global internet traffic 'in less than 10 years.' He made this prediction while introducing the new-generation Starlink V3 satellites, which offer higher network bandwidth. However, a few minutes later, SpaceX COO Gwynne Shotwell offered a more cautious take, saying that Starlink would account for a 'significant portion' of global internet traffic in the coming years, rather than the 'majority.'
A similar pattern repeated throughout. CFO Bret Johnsen introduced the computing power rental business to investors, revealing that the company had signed a cloud services contract worth $6.7 billion with a six-month service period, and projected reaching an annual recurring revenue run rate of $100 billion by year-end. He used a great deal of cautious language, but about 20 minutes later, Musk directly overturned that characterization, saying there was 'no question whatsoever' and further moved up the company's overall revenue target to $1 trillion by 2030.
Regarding the Starship crewed program, Musk almost promised that crewed flight capability would be ready by the end of next year, and said that by this time next year, they would be launching one Starship rocket per day. Shotwell quickly added that the company remains focused on completing the technical milestones required by NASA, offering the vague goal of 'hoping to achieve human lunar landing by 2028.' In last month's test flight, the improved heat shield system achieved its best results, but Musk had already concluded that 'the problem is solved.'
Now that SpaceX is a public company, if executives make promises they know cannot be fulfilled, they could theoretically face regulatory investigation or even fines. However, the SEC and the Department of Justice have reduced enforcement in recent years, and the company has moved its incorporation to Texas, establishing relatively strong legal protections against litigation.
Musk has painted grand blueprints many times in the past, but not a few have ultimately failed to materialize. The biggest difference now is that SpaceX is a publicly traded company, and investors need to view these bold promises with caution.
