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Elon Musk Dismisses WSJ Report on SpaceX AI Phone

7/1/2026

Summary

Musk Denies AI Phone

Elon Musk called the Wall Street Journal’s claim that SpaceX showed investors an AI handset “utterly false.”
The report said the prototype would run on a Qualcomm Snapdragon chip, use a proprietary OS and AI from xAI, and that sources consider the design possibly never built.
Musk previously said a Starlink-connected phone is not out of the question and SpaceX has spent billions on AI infrastructure and the Grok model.

Summary

SpaceX Eyes Mobile

SpaceX is evaluating a U.S. terrestrial mobile phone service connecting to Starlink, COO Gwynne Shotwell told investors.
Bloomberg reported SpaceX is discussing use of Charter Communications’ ground infrastructure to route phone traffic.
SpaceX already partners with T-Mobile to provide direct-to-cell satellite phone service via Starlink.
Analysts speculate SpaceX may acquire T-Mobile as it expands into terrestrial mobile services, noting Starlink is its only profitable business.

Summary

SpaceX Shares Slide

SpaceX shares fell 7.27% to $158.40, down $12.32 after reaching $171.74 earlier in the day.
The intraday low was $157.42, while the month-high on June 16 reached $225.64.
After the June 16 peak, the price fell to $147.11 before climbing back to $172.40.
The volatility occurred as investors scrutinized SpaceX’s rumored AI handset and its upcoming IPO plans.

Summary

Musk Promises Phone

Elon Musk said he would build a phone if X were removed from app stores, criticizing Apple and Google.
He pitched the phone as an “everything app” China’s WeChat that would combine Tesla, SpaceX and xAI.
Musk urged users to switch to Signal during the WhatsApp backlash and accused WhatsApp of exporting data.
Analysts warned that newcomers must meet expectations for hardware, cameras, software, battery life, carrier support and apps.

History

Historical Context

Apple’s 2007 iPhone launch—announced Jan 9 and soon responsible for 48 % of the company’s revenue—created a global smartphone platform that regulators now scrutinize. It was initially sold only with AT&T in the United States. Building on that model, Elon Musk’s SpaceX proposes a Starlink-linked phone using Snapdragon hardware, aiming to fragment the app-store market that Apple once dominated.

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Musk Denies AI Phone

Elon Musk called the Wall Street Journal’s claim that SpaceX showed investors an AI handset “utterly false.”
The report said the prototype would run on a Qualcomm Snapdragon chip, use a proprietary OS and AI from xAI, and that sources consider the design possibly never built.
Musk previously said a Starlink-connected phone is not out of the question and SpaceX has spent billions on AI infrastructure and the Grok model.

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