SpaceX Joins Tesla In Raising Prices On Inflationary Pressures: What You Need To Know

Zinger Key Points
  • Starlink's monthly fee jumped 11% just this week, while hardware packages jumped 20%.
  • Since the beginning of March, Tesla raised prices on Model X and Model Y vehicles by about 8%.

SpaceX is raising prices for everything from rocket launches to Starlink satellites amid elevated inflation pressures. 

What Happened: According to a CNBC report, citing an internal SpaceX email, the space exploration company on Tuesday sent notices to existing Starlink deposit holders detailing the price hikes.

"The sole purpose of these adjustments is to keep pace with rising inflation," the SpaceX email noted.

The Starlink monthly service price was increased from $99 to $110 per month. Starlink also boosted its hardware prices. The price increases will hit existing deposit holders, but prices are rising even more for any new orders. Starlink hardware will now cost existing deposit holders $50 more than previously expected, and all new orders will cost $100 more than the previously listed $499 price tag. 

Rocket prices also saw price increases. The starting price of a SpaceX Falcon 9 launch was raised from $62 million to $67 million.

According to SpaceX's website: “Missions purchased in 2022 but flown beyond 2023 may be subject to additional adjustments due to inflation.”

Why It Matters: SpaceX founder and CEO Elon Musk noted in a tweet last week that both SpaceX and Tesla Inc TSLA were battling recent inflation pressures.

Tesla subsequently raised prices on its full vehicle lineup in the U.S., as well as on some of its vehicles in China. The inflation pressure on raw materials, cited by Musk, could put further pressure on Tesla prices. Battery materials, like nickel and lithium, have been on the rise amid Russia's invasion of Ukraine.

Tesla has already hiked vehicle prices multiple times since the beginning of March, but the EV company is likely far from finished. Tesla hiked prices on its U.S. vehicles more than 10 times last year, and inflationary pressures continue to rise.

See Also: Why This Tesla Analyst Thinks This 'One Really Big Item' Could Be Part Of Master Plan Part 3

Since the beginning of March, the Model X and Model Y prices have risen about 8%, but the Model S and Model Y are only up about 5%. For comparison, the aforementioned Starlink monthly fee jumped 11% just this week, while hardware packages jumped 20% (10% for existing reservation holders).

The time to buy that long-awaited Tesla might be sooner, rather than later. 

Photo: courtesy of SpaceX.

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Posted In: NewsSPACEFinancingGeneralCNBCElon MuskSpaceXStarLink
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