Elon Musk’s Starlink has run into trouble in Canada, as Bell (BCE), the country’s largest telecommunications company, has called for the SpaceX subsidiary to be blocked from federal government subsidies. Bell argued that Starlink doesn’t need these subsidies, as it charges a uniform price for its services across Canada.
Starlink fired back against this argument, stating that blocking its access to federal subsidies would harm competition and increase prices. Musk’s company said this would be bad for those in remote sections of Canada, especially in Indigenous areas. The federal subsidies Bell wants Starlink blocked from concern wireless access in the northern regions of Canada.
Does Bell Have an Ulterior Motive to Block Starlink?
Bell’s move against Starlink might have its roots in a political battle. Anti-American sentiment has increased in Canada since President Donald Trump took office earlier this year. This came after the President suggested annexing the country. Those negative U.S. sentiments increased further when Trump started a trade war with Canada via import tariffs.
Starlink is caught in this as founder Elon Musk is a close ally of President Trump. He runs the Department of Government Efficiency (DOGE), which has been behind massive federal job cuts this year. His close proximity to the Trump administration also resulted in Ontario canceling a $100 million Starlink contract. The Canadian province also banned future contracts with U.S. companies until tariffs are removed.
How to Invest in Starlink
Starlink is a subsidiary of SpaceX, which is a private company. That means retail traders can’t easily take a stake in it. It’s possible through certain exchanges, but investing in private companies comes with a large amount of risk.
As an alternative, traders might consider a stake in Tesla (TSLA), the only publicly traded company operated by Musk. The analysts’ consensus rating for TSLA is Hold, based on 16 Buy, 11 Hold, and 11 Sell ratings over the last three months. With that comes an average price target of $307.75, representing a potential 38.71% upside for the shares.
