SpaceX stock was trading at $138.98 on Monday afternoon, up 3.2%, after a Washington Post report said the company is in talks with EchoStar about buying Boost Mobile or gaining access to its wireless network.The rebound follows a sharp Friday selloff. SPCX closed October 30 at $134.72, down 6.37%, after trading as low as $134.50. The stock remains below the $150 price at which it opened on its June Nasdaq debut, although it is now back above the $135 IPO offer price.EchoStar also gained on the report, with ECHO trading at $99.57, up 2.7% in the latest cash-market read. The shares had risen about 4% before the opening bell.The important qualification is that the reported discussions have not produced an announced transaction. Neither SpaceX nor EchoStar has publicly confirmed a Boost Mobile deal, and no potential purchase price has been reported.
SpaceX is reportedly talking to EchoStar about Boost
The Washington Post reported on November 2, citing people familiar with the discussions, that SpaceX has held talks with EchoStar in recent months about either acquiring Boost Mobile or securing access to the network used by the wireless provider.Elon Musk has been personally involved in the discussions and met EchoStar Chairman Charlie Ergen last month, according to the Post.The report also said SpaceX turned to EchoStar after AT&T, Verizon and T-Mobile rejected requests from Musk to use their networks as part of his effort to build a SpaceX-branded U.S. wireless service.That strategy would fit SpaceX’s existing push into terrestrial mobile connectivity. FinanceFeeds reported in October that SpaceX agreed to acquire Grain Management’s nationwide 800 MHz spectrum portfolio for a reported $8 billion, adding a low-band coverage layer to Starlink Mobile.
Buying Boost would not automatically solve the network problem
Boost Mobile gives SpaceX a possible route into the conventional wireless market, but it also comes with a significant complication.Boost relies partly on network capacity leased from AT&T and T-Mobile. The Washington Post reported that those agreements generally cannot simply be transferred to another buyer without the carriers’ consent. SpaceX could therefore buy Boost and still face negotiations with two of the companies it is trying to challenge.The issue goes directly to the economics of Starlink Mobile. Satellites can expand coverage, particularly in areas where towers are sparse, but competing for ordinary mobile customers in cities requires substantial terrestrial capacity.FinanceFeeds previously examined that constraint after SpaceX’s 800 MHz push triggered a major repricing of AT&T, Verizon and T-Mobile shares. The spectrum improves coverage and indoor penetration, but does not by itself replicate the capacity of a nationwide terrestrial network.
SPCX is recovering from Friday’s 6.4% drop
Monday’s move also comes after a difficult end to October for SpaceX shareholders.SPCX fell 6.37% on Friday to $134.72. FinanceFeeds’ October 31 SpaceX stock outlook identified $140 as the first level the stock needed to reclaim after the selloff. Monday’s intraday high reached $142.05 before shares pulled back below $140 in the latest verified quote.The company is also entering a capital-intensive phase. SpaceX expects fourth-quarter capital spending of $35 billion to $40 billion after Q3 capex reached $19.6 billion, with most of that spending directed toward AI infrastructure.Another recent disclosure increased the focus on customer concentration. Bloomberg reported last week that Anthropic was the previously unidentified “Customer B” responsible for 34.5% of SpaceX’s third-quarter revenue. SpaceX reported total Q3 revenue of about $14.6 billion, up 161% year over year.The Boost report therefore adds another potential growth path to a company already spending heavily across satellites, AI computing and terrestrial wireless infrastructure.For now, though, investors have a report of negotiations rather than a transaction. The next material step would be confirmation from SpaceX or EchoStar, followed by details on whether the talks involve an outright Boost acquisition, network access or another structure capable of getting Starlink Mobile onto terrestrial U.S. networks.
