This week isn’t off to a good start for Elon Musk or for any of his companies.
Tesla (TSLA) seems unable to catch a break, as shares continue to trend downward. March 10 marked the stock’s steepest decline in five years, as shares plunged 15% in just a few hours of trading.
Last week brought even more problems — SpaceX suffered its second disastrous rocket launch this year as another vessel exploded during a test flight. This could severely compromise Musk’s plans to corner the market on space tourism, one of his best-documented ambitions.
Yesterday brought new troubles as X experienced a network outage this morning, making the network inaccessible for hours. Musk attributed it to a cyberattack but few details have been provided as to who he thinks is responsible.
Across the Atlantic Ocean, however, there seems to be new trouble brewing for Musk as European rivals prepare for action.
Elon Musk may be facing a difficult decision as international tensions continue to heat up.
Marc Piasecki/Getty Images
European tech leaders aren’t afraid of Elon Musk
Musk has been experiencing quite a bit of tension regarding Europe lately. His recent antics have caused consumer sentiment toward Tesla to sour across the continent, pushing down both electric vehicle (EV) sales and share prices.
However, Musk’s new European headache actually concerns one of his other companies. He recently threatened to pull the internet service being provided to the Ukrainian people by Starlink (a satellite internet service controlled by SpaceX), and European rivals are prepared to step in.
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As many European satellite internet providers see it, if Musk decides to cease helping Ukraine, it could prove a valuable opportunity. According to reports, several prominent companies from different countries are in talks to replace Starlink, including Luxembourg’s SES, Spanish firm Hisdesat, France’s Eutelsat/OneWeb, and U.S. company Viasat VSAT.
Despite their willingness to provide these necessary digital services, all companies are facing a tall order. As the Financial Times reports:
“Replacing the ubiquitous laptop-sized devices that have become so crucial to Ukraine’s defence against Russian aggression remains a tall order. More than 40,000 terminals are in operation across the military, hospitals, businesses and aid organisations, according to Ukraine’s digital minister Mykhailo Fedorov.”
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Ukrainian military expert Pavlo Narozhny has provided context on the benefits of Starlink’s internet services, stating that they run less risk of being jammed by Russian interference than typical radio communication devices. He highlights that this has been a primary incentive for Ukrainian military forces to use the service.
The future remains uncertain as Ukraine considers its options
The Financial Times also notes that a short-term solution for the problems posed to Ukraine’s forces could involve a “patchwork” of different internet providers working together from different locations to provide valuable power backup connections if Starlink’s services are turned off.
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According to Lluc Palerm Serra, research director at space consultancy AnalysysMason, ”There are alternatives but there are none that can offer the level of supply that Starlink has.” He provides more context, stating that Musk’s company has 7,000 satellites in low orbit, operating “roughly 550km above sea level.”
Musk recently stated in an X post that he doesn’t plan on turning off Starlink’s Ukraine terminals, adding that the prospect will never be used as a bargaining chip. However, Musk is known for his unpredictable nature and the fact that other companies are in talks to provide the same services suggests that Europe’s leaders don’t trust him.
That may be because Musk has previously criticized Ukraine. Despite their nation’s reliance on Starlink, Ukraine’s leaders want to explore other options, particularly as tensions between the U.S. and Europe continue to escalate.
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