Elon Musk, the CEO of Space Exploration Technologies Corp. (NASDAQ:SPCX), has refuted reports that his company is developing a handheld AI device.
Musk took to X and responded to the reports by labeling them as “utterly false”.
The original post about the report was deleted later on.
Earlier this year, Musk said a Starlink phone was “not out of the question” and could be AI-optimized, but later clarified that SpaceX is not developing a smartphone.
The Report In Question
A report by the Wall Street Journal, published on Wednesday, indicated that SpaceX had presented investors with a prototype of a device similar to Apple Inc.‘s (NASDAQ:AAPL) iPhone, but “slimmer” before the IPO. As per the WSJ article, this device would run on SpaceX’s proprietary system, using AI technology from xAI.
The device would also include chips from Qualcomm Inc. (NASDAQ:QCOM), according to the report. However, the device is reportedly still in the prototype phase, with no official name assigned, and it remains unclear whether it will ever be released to the public.
The report comes after SpaceX President Gwynne Shotwell, last month, reportedly informed investors about the company’s plans to launch a Starlink retail product for U.S. consumers and build its own terrestrial mobile network.
What Do The Analysts Say?
An analyst at TD Cowen predicted that SpaceX could pursue an acquisition of T-Mobile US Inc. (NASDAQ:TMUS) to expand its wireless ambitions, leveraging its existing Starlink partnership and targeting the growing mobile connectivity market.
In its IPO filing, SpaceX estimated a $740 billion addressable market for Starlink Mobile, signaling plans to expand the service and compete with carriers such as Verizon Communications (NYSE:VZ) and AT&T (NYSE:T).
On the other hand, analysts at Vital Knowledge said SpaceX faces significant hurdles in scaling consumer device manufacturing and competing with established platforms, arguing that Elon Musk’s companies often receive generous valuations based on ambitious product promises rather than proven consumer products, reported Forbes.
“…it’s hard to imagine SpaceX becoming a force in consumer electronics,” wrote the firm.
Price Action: Since its debut on June 12, SpaceX stock has declined 2.12%, as per Benzinga Pro data. On Wednesday, it plunged 7.80% to close at $157.54.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor
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