SpaceX shares SPCX advanced on Tuesday as investors continued to react to reports that Elon Musk’s company is exploring a deal with EchoStar to acquire Boost Mobile or gain access to its wireless network.
SpaceX shares rose around 3% to approximately $141, extending gains after closing Monday at $136.37.
The rally follows a Washington Post report that the company has held discussions with EchoStar, the parent of discount wireless carrier Boost Mobile, about a possible arrangement.
Musk reportedly met EchoStar Chairman Charlie Ergen last month to discuss the potential deal.
Neither company has publicly confirmed an agreement, and the talks could result in either an acquisition of Boost Mobile or access to its existing network arrangements.
Boost Mobile could accelerate Starlink’s wireless ambitions
A deal with Boost Mobile could give SpaceX an established customer base and a quicker route into the US wireless market as it develops Starlink Mobile, a service combining satellite connectivity with traditional cellular networks.
EchoStar had approximately 7.38 million wireless customers at the end of the second quarter across its Boost Mobile and Gen Mobile businesses.
Boost relies on network capacity leased from AT&T and T-Mobile rather than operating an extensive nationwide cellular network of its own.
SpaceX has been trying to secure access to terrestrial networks to complement its growing satellite constellation.
T-Mobile CEO Srini Gopalan has publicly ruled out granting SpaceX mobile virtual network operator (MVNO) status on its network.
A potential Boost arrangement could therefore offer an alternative route, although transferring existing network agreements may require approval from AT&T and T-Mobile.
AI rebound support shares
Broader enthusiasm around artificial intelligence and next-generation infrastructure has also provided support to technology stocks.
The Nasdaq Composite Index advanced 1%, with several major firms involved in the AI trade up on Tuesday.
SpaceX has been expanding beyond its traditional launch and satellite businesses, with ambitions in AI computing and wireless connectivity.
The potential Boost Mobile arrangement would add another revenue opportunity by allowing the company to combine Starlink’s satellite network with ground-based cellular coverage.
The move could also help address limitations of satellite-based connectivity, particularly in densely populated areas and locations where indoor coverage remains challenging.
Analysts remain bullish on SpaceX
Analyst expectations remain broadly positive, with consensus price targets suggesting substantial upside from recent trading levels.
According to TipRanks, the average analyst price target stands at approximately $250.34, based on coverage from 35 analysts.
Needham analyst Ryan Koontz reiterated a Buy rating with a $250 price target on October 27.
He said SpaceX’s third-quarter results significantly exceeded expectations and demonstrated the benefits of its vertically integrated business model.
Morgan Stanley analyst Adam Jonas also maintained an Overweight rating with a $300 price target, viewing SpaceX as more than just a launch and satellite connectivity company.
EchoStar shares have also gained following the reports, with a 2.75% rise on Tuesday to add on Monday’s increase.
However, the potential deal faces commercial and contractual hurdles, particularly because Boost relies on network agreements with rival carriers.
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