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Amazon (NASDAQ:AMZN) said on Thursday that the production launch of its Project Kuiper satellites would be delayed and start in the fourth-quarter, with beta testing occurring next year.
Shares rose 2.1% on Thursday, hitting a new 52-week high, one day after surpassing $2T in market cap.
Amazon executive Steve Metayer made the comments at an event marking the opening of Amazon’s satellite production facility in Seattle.
Production of the Kuiper satellites, which are aimed at competing with SpaceX (SPACE) StarLink’s satellite internet service, had been slated to go into effect in the first half of 2024.
Despite the rivalry between Amazon and SpaceX, Amazon contracted the Elon Musk-led SpaceX in December to deploy its Kuiper satellites, using SpaceX’s Falcon 9 rocket. Amazon also has deals with Arianespace, Blue Origin and United Launch Alliance — a joint venture between Boeing (BA) and Lockheed Martin (LMT) — to provide heavy-lift launch services for Project Kuiper.
Separately in December, Amazon said that it successfully completed tests of an optical mesh network of laser links between its Project Kuiper internet satellites in low Earth orbit. In November, Amazon said it achieved a 100% success rate in its initial test mission.
Amazon launched two prototype satellites in October on a first test mission dubbed “Protoflight.”
In 2020, Amazon won FCC approval to build and deploy a $10B network of satellites to provide high-speed Internet service to low-density areas.
Amazon hopes to launch approximately 3,200 satellites into low-Earth orbit and provide broadband internet for millions around the world.
(This story has been updated to change the first paragraph to say production launch of the satellites has been delayed.)
