Elon Musk Refutes Report Claiming SpaceX Hiked Starlink Fees For Pentagon Drones: ‘False’

• Elon Musk claimed the Pentagon improperly used Starlink’s civilian network for military drone operations.
• Reuters said the military eventually agreed to the increased fees as operations tied to Iran intensified.
• The dispute comes ahead of SpaceX’s highly-anticipated IPO next month.

Elon Musk has said that a report claiming SpaceX (SPCX) increased Starlink fees for Pentagon-linked LUCAS suicide drones from $5,000 to $25,000 per terminal was “false.” The report was published in Reuters.

Elon Musk Says Military Misused Civilian Starlink System

According to the Reuters report, SpaceX executives met Pentagon officials and said the military had been paying around $5,000 per terminal while effectively using a higher-tier service valued closer to $25,000. The report cited Pentagon documents and two people familiar with the matter.

Reacting to the report in a post on X, Musk wrote, “Reuters article is false.” He added that the military had made “improper use of the Starlink civilian system for military purposes,” calling it a “direct violation of terms of service.” 

What The Report Said

Reuters reported that tensions have been rising between SpaceX and the Pentagon over Starlink pricing tied to LUCAS suicide drones, which are low-cost US drones similar to Iran’s Shahed drones. According to the report, SpaceX said the drones should be billed under its more expensive aviation-tier service instead of lower-priced land-based plans.

Pentagon officials reportedly pushed back on the pricing, saying the $25,000 monthly aviation fee was meant for aircraft and not drones that only used Starlink for short periods during missions. Reuters said the Pentagon eventually agreed to the higher pricing as it increased operations involving Iran, nearly doubling the overall cost per drone.

The report also said the Pentagon and SpaceX have disagreed over other Starlink-related pricing issues, including plans to provide direct-to-cell connectivity in Iran. Reuters cited multiple sources and documents, saying the disputes highlight the Pentagon’s growing dependence on SpaceX ahead of the company’s expected IPO next month. 

SpaceX IPO: What Retail Sentiment Says

Retail sentiment on Stocktwits for SpaceX’s pre-IPO ticker trended in “extremely bullish” territory.

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