SpaceX faces daunting challenges if it's going to win the internet space race

Elon Musk and SpaceX have staked their legacy on a spaceship capable of carrying a hundred passengers to Mars. But to pay for that dream, the Hawthorne company is banking on a project that is ambitious in its own way: selling broadband internet service delivered by more than 1,000 small satellites.

Chief Executive Musk has mused to reporters about the technological hurdles facing SpaceX's Starlink constellation, including antennas that track the satellites as they move through the sky and laser communication systems that allow the spacecraft to talk to each other. Last month, SpaceX launched the first 60 satellites of its planned constellation.

But industry experts say the company's biggest challenge is financial. SpaceX must drive down the cost of sophisticated hardware and software to the point where it can deliver fast, reliable internet service at a price point that competes with cable or fiber-delivered broadband services, while finding enough underserved markets to provide scale.

SpaceX President Gwynne Shotwell hasn't been shy about the hurdles Starlink faces.

"This is probably one of the most challenging, if not the