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Elon Musk denied a report claiming SpaceX showed investors a prototype handheld device designed for interacting with artificial intelligence systems. The Wall Street Journal published the report, describing the object as similar to an iPhone but slimmer. Musk called the report utterly false in a post on X, rejecting it outright without qualification.
This is not the first time Musk has pushed back against this type of claim. After a similar Reuters report in February, he stated flatly that SpaceX is not developing a phone. SpaceX did not immediately respond to a request for comment from Forbes.
What the report actually claimed
According to the Wall Street Journal, SpaceX showed the prototype to select investors. The device would reportedly run on SpaceX’s proprietary operating system. It would also use AI technology from xAI, which SpaceX absorbed in February, and rely on chips from Qualcomm. Crucially, the device remains in a prototype phase. No name exists for it, and it remains unclear whether SpaceX will ever release it to the public.
Analysts are skeptical regardless
Industry analysts at Vital Knowledge weighed in on the report with measured skepticism. They noted that SpaceX faces a long road before it could successfully manufacture a consumer device at scale and compete against leading platforms. They also pointed to a pattern where Musk-led companies receive enormous benefit of the doubt on product promises, which feeds into significant valuation premiums at both SpaceX and Tesla for products that remain more idea than reality. The analysts described it as hard to imagine SpaceX becoming a genuine force in consumer electronics.
SpaceX stock took a significant hit
SpaceX stock dropped 7.3 percent on Wednesday following the report and subsequent commentary. That decline drove Musk’s net worth down by more than $50 billion, temporarily eliminating his trillionaire status.
The broader mobile ambitions context
The handheld device speculation arrives as SpaceX separately explores a significant expansion into retail mobile phone service. Chief operating officer Gwynne Shotwell told investors the company is considering plans to offer a terrestrial mobile phone service, according to the Financial Times. Additionally, Bloomberg reported that SpaceX is in talks with Charter Communications about a potential partnership using the internet provider’s ground infrastructure for its phone traffic. SpaceX already partners with T-Mobile to deliver direct-to-cell satellite phone service through its Starlink satellite network.
Together, those reports paint a picture of a company actively exploring ways to expand its consumer-facing offerings, even as Musk continues to deny the specific handheld device claim.
Source: Forbes, Wall Street Journal, Financial Times, Bloomberg
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