Elon Musk Says SpaceX Just Bought “the Last Critical Piece” Required to Take on the Wireless Giants. Here’s Why It Will Need to Spend Billions More to Compete.
Space Exploration Technologies (NASDAQ: SPCX) is threatening to upend yet another industry. This time, the company has the wireless communication sector in its sights, as it has now acquired what Elon Musk described as “the last critical piece” of the puzzle required to offer complete wireless coverage in America. Shares of the big three wireless carriers — AT&T (NYSE: T), T-Mobile (NASDAQ: TMUS), and Verizon (NYSE: VZ) — fell sharply on the news that SpaceX intends to compete in their arena.
However, SpaceX’s latest big purchase could also be sending it down a path that will require it to spend billions of dollars more. While it’s not a meaningful competitive threat to the wireless carriers yet, it could still have a significant effect on their finances as soon as next year.
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