A TD Cowen analyst predicted that SpaceX would acquire T-Mobile. Why would SpaceX want it?

In an effort to transform its Starlink satellite business into a global communications platform that integrates broadband internet, mobile services, and hybrid satellite-terrestrial networks, — Elon Musk’s SpaceX may attempt to acquire the U.S. carrier T-Mobile, TD Cowen analyst Gregory Williams suggested in a note to clients, according to Seeking Alpha.

Starlink is already in talks about a partnership with the three largest U.S. telecommunications operators—AT&T, Verizon, and T-Mobile. Musk’s company is exploring opportunities to pool spectrum resources to develop direct satellite connectivity with mobile devices. However, in order to fully provide terrestrial and satellite services, SpaceX will in any case need to lease network capacity from one of the operators on a wholesale basis, says a TD Cowen analyst.

In this situation, according to Williams, T-Mobile is the most suitable candidate for acquisition. The analyst points to the company’s market performance, its corporate culture, its status as a pure-play wireless provider, and its existing partnership with Starlink (since the summer of 2025, T-Mobile and Starlink have enabled smartphones to automatically connect to satellites in areas without traditional terrestrial cellular coverage). Williams also noted that it was precisely SpaceX’s potential interest in the operator that may have prompted Germany’s Deutsche Telekom to seek full control over its American “subsidiary” T-Mobile (Bloomberg reported on this in April, citing sources).

A TD Cowen analyst’s forecast provided a boost to U.S. telecommunications stocks yesterday: despite a broad sell-off in the Nasdaq Composite, T-Mobile shares ended the session in positive territory—gaining 0.43%—and are also trading slightly higher in premarket trading on June 26. AT&T shares (up 0.22% at Thursday’s close) and Verizon shares (up 0.85%) are showing similar trends. SpaceX lost 0.87% of its market value on June 25.

Since the beginning of the year, T-Mobile’s stock has fallen by just over 10%, and over the past 12 months, it is down nearly 23%. Nevertheless, Wall Street analysts view the company’s outlook positively: 26 analysts covering the operator’s stock recommend buying it (with “Buy” and “Overweight” ratings), while four recommend holding it. There are no sell recommendations for T-Mobile shares.

According to SpaceX’s prospectus, which the company released ahead of its IPO, Starlink accounted for 69% of Musk’s company’s revenue at the end of the first quarter of 2026 and was SpaceX’s only profitable division, Forbes notes. The company’s space division posted a loss of $619 million during the same period, while the artificial intelligence division lost $2.5 billion.

In June, Oppenheimer analyst Timothy Horan predicted a “revolution in the telecommunications industry” that the Starlink satellite network could bring about. According to the expert, Musk’s company is posing an increasing threat to traditional telecom giants due to the rapid decline in the cost of technologies that are becoming an alternative for providing fixed wireless internet access.

At the same time, analysts are discussing another consolidation scenario: a merger of Musk’s two companies—SpaceX and Tesla. In May, Wedbush analyst Dan Ives estimated the probability of their merger by 2027 at 80% or higher. SpaceX President Gwynne Shotwell later suggested in an interview with CNBC that such a deal “might make Elon’s lifea little easier, ”assuring that the synergy between Tesla and SpaceX is “beyond any doubt.”

This article was AI-translated and verified by a human editor