Ross Gerber of Gerber Kawasaki has urged Space Exploration Technologies Corp (NASDAQ: SPCX) to develop a Starlink-enabled smartphone powered by artificial intelligence. In posts on X on August 8, 2026, the investor outlined a vision for a device that eliminates traditional applications, instead relying on voice commands to execute tasks. This proposal highlights growing investor interest in hardware integration within the satellite internet sector, as shareholders look for new revenue streams beyond connectivity services.

Gerber criticized artificial intelligence company OpenAI’s recent smart speaker announcement, calling it an "obvious miss" led by Sam Altman. He argued that the market does not need another smart speaker but rather a mobile device with superior utility. "I’m been thinking a lot about a starlink AI based phone with a 3 day battery life," Gerber wrote, emphasizing that the phone would have "no apps" and would "just do what you tell it to do." He added that the device would connect "anywhere in the world" at a "fixed rate cost."

Market Reaction and Shareholder Sentiment

The suggestion aligns with broader enthusiasm for Starlink’s expansion into consumer hardware. In a separate exchange, Gerber responded to user @poshimoto, who stated they would switch service providers if SpaceX released such a phone. Gerber agreed, noting, "Many would buy one just as a back up… I have two starlink systems." This sentiment underscores potential demand for redundant communication tools among existing customers.

Space Exploration Technologies Corp shares reflected positive momentum following the comments. On Monday, SPCX stock rose 3.07% to $137.19 during pre-market trading. This move marked a rebound above the company’s initial public offering price of $135 per share, reversing weeks of decline.

Broader Connectivity Strategy

The call for a Starlink phone complements recent statements by Elon Musk regarding connected vehicles. Musk recently touted the potential for "billions" of connected cars via Starlink, following reports of a cybercab testing with a Starlink dish in Dallas, Texas. He asserted that satellite internet could provide high-bandwidth connectivity to billions of vehicles globally.

Meanwhile, Tesla Inc (NASDAQ: TSLA), another Musk-led entity, reported running out of funds allocated through California Gov. Gavin Newsom’s MyFirstEV rebate program. The program offered a $3,500 discount on new electric vehicles and a $1,750 discount on used ones for first-time buyers in the state.

What the Numbers Show

While Gerber’s proposal remains speculative, the immediate market response suggests investors are receptive to expanded hardware ecosystems. The recovery of SPCX shares above the $135 IPO level indicates renewed confidence despite previous volatility. However, Benzinga Edge Rankings note that SpaceX fails to provide a favorable price trend in the Short, Medium, and Long term, suggesting caution among technical analysts.

Elon Musk’s net worth surged by $96 billion in a single day, reinforcing his status as the world’s wealthiest individual, as shares of Space Exploration Technologies Corp. (NASDAQ: SPCX) and Tesla (NASDAQ: TSLA) rebounded sharply. The wealth increase coincided with SpaceX’s strongest trading day since its initial public offering in June, with the stock rising over 10% on Friday. This rally followed the company’s first earnings report as a publicly traded entity and the expiration of the employee lock-up period. Bloomberg data indicates Musk’s total net worth now exceeds $817 billion, marking an increase of $198 billion from the start of the year.

SpaceX delivered robust financial results for the quarter, with revenue jumping 92% to $7.8 billion. The connectivity segment emerged as the largest contributor, generating over $4.2 billion in revenue. The AI and space businesses contributed $2.5 billion and $962 million, respectively. Despite the top-line growth, capital expenditure remained heavy, with the company spending $15 billion on its AI business, $1.36 billion on connectivity, and $1.17 billion on space operations. On the balance sheet side, SpaceX concluded the quarter with more than $100 billion in cash and short-term investments.

Analyst Outlook and Valuation

Market sentiment remains overwhelmingly positive toward SpaceX. According to Benzinga data, the consensus price target among analysts stands at $229, representing a nearly 100% upside from current levels. Of the 39 analysts tracking the stock, 37 have assigned a buy rating. Only two firms, CFRA and Philip Securities, maintain a sell rating. Douglas Harned of Bernstein raised his target to $248, while Cantor Fitzgerald maintained its outlook at $246. Other bullish institutions include Royal Bank of Canada and William Blair.

What the Numbers Show

The financial data reveals a distinct divergence between revenue generation and capital intensity across SpaceX’s business units. While the connectivity segment is currently the primary revenue driver at $4.2 billion, it accounts for a relatively small fraction of total capital expenditure compared to the AI division. The AI business generated $2.5 billion in revenue but required $15 billion in spending, indicating a significant investment phase that has not yet yielded proportional top-line returns. This suggests that near-term profitability may be pressured by AI-related capex, even as the connectivity segment provides stable cash flow. Analysts project revenue will reach $44 billion this year and $90 billion next year, supported by Starlink and data center expansion.

Tesla continues to face headwinds amid intensifying competition in the electric vehicle industry and rising capital expenditures. Meanwhile, speculation regarding a potential merger between SpaceX and Tesla persists, despite denials from the company. Reports suggested Musk was preparing to sell Tesla’s Chinese business to facilitate such a deal, though these claims have been refuted. Musk’s combined wealth now surpasses that of Larry Page, Jeff Bezos, and Michael Dell combined.