Not only has Tesla been affected by Musk’s political decisions, but now SpaceX is also facing repercussions due to his actions.
Yesterday, as Musk met with Donald Trump in the U.S. Congress, his controversial political stance began creating opportunities for his rivals in the European market.
Previously, Musk’s influence in the White House had already impacted Tesla’s sales and stock value. Now, those effects seem to have extended to SpaceX, particularly regarding its satellite internet service, Starlink.
Starlink has been crucial for the Ukrainian military’s communications since the start of the Russian invasion in 2022. However, there is now concern that this service could be disrupted soon.
According to reports from Reuters, U.S. officials have suggested the possibility of cutting off Ukraine’s access to Starlink. Although Musk has denied these claims, his control over the country’s connectivity has raised concerns. This worry has grown as both Musk and Trump have expressed criticism toward the Ukrainian government.
Amid this tension, European satellite internet companies have proposed replacing Starlink with their own networks.
European Competitors of Starlink and Tesla
Recently, Eutelsat, a Franco-British company, announced that it is in talks with the European Union to extend its internet service to Ukraine. This announcement boosted its stock by 77% in a single day.
At the same time, Thales, a French satellite company, issued an indirect warning about Starlink. During a press conference, Thales CEO Patrice Caine highlighted the risks of governments relying on providers that mix economic interests with political motivations.
“Government actors need reliability, transparency, and stability,” Caine stated. “A provider that combines economic logic with political agendas does not inspire confidence in certain clients.”
Similar concerns have arisen regarding Musk’s impact on Tesla. Capitalizing on the discontent generated by his political decisions, Polestar, a Swedish electric vehicle manufacturer, offered discounts to Tesla owners to lease its new SUV.
Jordan Hofmann, Polestar’s U.S. sales director, described the response as “extraordinary.”
“This week we recorded some of the highest order days for the Polestar 3,” he posted on LinkedIn.
Now, doubts about Starlink could open another door for Musk’s competitors in the market.
By: Nestor Castillo, ForAllTechNews Director
Photo credict: Flickr / ZACK/MCOM / CC BY 2.0 / Attribution 2.0 Generic