Following Tesla, Musk’s SpaceX and Starlink Hike Prices Due to ‘Rising Inflation’

Elon Musk arrives at New Castle County Courthouse, Wilmington, DE, USA - 13 Jul 2021
Rick Kaufman / London Entertainment / Shutterstock.com

First it was Tesla. Now it’s SpaceX. The company has announced it is raising prices for rocket launches and its Starlink satellite internet service, citing “excessive levels of inflation” affecting both businesses.

See: Inflation Is the Single Most Important Business Problem: Here’s How 5 Small-Business Owners Are Adjusting
Find: Elon Musk’s Tweets Will Remain Subject to SEC Approval

Both Tesla and SpaceX’s price hikes come on the heels of Elon Musk’s March 14 tweets in which he asked his followers: “What are your thoughts about probable inflation rate over next few years?” He added in a subsequent tweet, “Tesla & SpaceX are seeing significant recent inflation pressure in raw materials & logistics,” as GOBankingRates previously reported. 

Per an email obtained by CNBC, SpaceX sent notices to Starlink users and deposit holders noting the higher prices.

“The sole purpose of these adjustments is to keep pace with rising inflation,” the Starlink email read.

CNBC reports that Starlink’s baseline monthly service price will increase by 11%, to $110 from $99 per month, effective May 21. The price of the baseline Starlink hardware will jump by 10%, to $549 from $499, for users who placed a deposit but are on SpaceX’s waiting list for service.

Make Your Money Work Better for You

For new orders, the company increased the base hardware price by 20%, to $599 from $499, CNBC added.

Earlier this month, the cost of some Tesla models increased by a range of 4% to 7%, with the price of a rear-wheel-drive Tesla Model 3 now at $47,000 — up from about $45,000. Dual-motor long-range and performance versions are now about $54,500 and $62,000, respectively. Those prices moved up by about $3,500 and $3,000, respectively. A long-range Model Y now starts at about $63,000, up from $59,000. The performance version now starts at about $68,000, up from $64,000, Barron’s reports.

SpaceX exec Tom Ochinero told CNBC the price increases were “long overdue and it’s just the cost of everything. I don’t even think that covers the cost of everything we’re experiencing, everything from helium to gas to my humans — you got to pay people so much now, it’s such a competitive market.”

Learn: Tesla Hikes Prices as Musk Says There is ‘Inflation Pressure on Raw Materials’
Explore: Elon Musk’s Starlink Satellites Arrived in Ukraine

Make Your Money Work Better for You

SpaceX also raised prices across its launch business, with increases affecting everything from wholesale rocket purchases to small satellites hitching a ride to orbit, CNBC added. Now, the starting prices for a Falcon 9 or Falcon Heavy rocket will each increase by about 8%. A Falcon 9 launch will cost $67 million, up from $62 million, and a Falcon Heavy launch will now run $97 million, up from $90 million.

Share this article:

About the Author

Yaël Bizouati-Kennedy is a full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

Best Bank Accounts of August 2022

Untitled design (1)
Close popup The GBR Closer icon

Sending you timely financial stories that you can bank on.

Sign up for our daily newsletter for the latest financial news and trending topics.

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

For our full Privacy Policy, click here.