Why SpaceX stock is rising today

Space Exploration Technologies Corp.(NASDAQ:SPCX) stock is up 3.2% as of 12:55 p.m. ET on Monday, Nov. 2, after a report that it's looking for a new way into the wireless mobile business.

The S&P 500 and the Nasdaq Compositeare up 0.2% and 0.3%, respectively.

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Why a Boost Mobile deal could help SpaceX in wireless

The Washington Post reported that over the past few months, SpaceX has been in talks with EchoStar(NASDAQ:ECHO), the owner of the discount mobile brand Boost Mobile, about a possible deal to use its network or purchase the Boost brand. This would help SpaceX launch Starlink Mobile, a satellite-and-ground network it hopes could rival the big carriers like AT&T(NYSE:T), T-Mobile(NASDAQ:TMUS), and Verizon(NYSE:VZ).

EchoStar had 7.4 million wireless subscribers at the end of its last quarter. That could give SpaceX a nice base from which to build.

The hurdles facing a SpaceX Boost Mobile deal

Of course, there are some complications: Boost has no towers of its own. Instead, it rents capacity from AT&T and T-Mobile. That could be an issue given that SpaceX has already approached both companies (as well as Verizon) and was turned down.

Image source: Getty Images.

Still, the possibility of a deal was enough to lift the stock. Starlink Mobile could greatly expand the company's customer base and help SpaceX deliver the growth it's promised , but there are significant hurdles in getting there that investors need to keep in mind.

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