Billionaire investor Elon Musk’s Starlink Services is struggling to maintain its supremacy with the growing competition in the high-speed satellite internet market. The SpaceX-owned telecom company is struggling to maintain its lead as China’s SpaceSail and Jeff Bezos-backed Project Kuiper (AMZN) emerge as strong challengers. Notably, Starlink operates as a fully owned division of SpaceX, the aerospace firm led by Musk.
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Starlink vs. China
China is quickly growing its low-Earth orbit satellite network, directly challenging Musk’s leadership in satellite internet for remote regions.
For instance, SpaceX launched Starlink in Brazil in June 2022, providing satellite internet services. Despite its success, the Brazilian government is increasingly wary of Starlink’s growing control and Musk’s influence in the region. Consequently, China-based SpaceSail signed an agreement to enter Brazil in November and revealed that it is in talks with over 30 countries for expansion. Brazil is also in discussions with Jeff Bezos’ Project Kuiper and Canada’s Telesat for satellite internet services, according to a Brazilian official.
Interestingly, China’s SpaceSail is backed by strong government funding from Shanghai Spacecom Satellite Technology (SSST). Unlike Starlink, SpaceSail uses a local supply chain for efficiency and benefits from Chinese-made technology. Additionally, it aims to expand internet access in underserved regions like Iran, South America, and Africa, where Starlink has yet to expand significantly.
Starlink Expands Footprints in Asia
Elsewhere, Starlink is set to expand its coverage across most of Southeast Asia by 2025. With varying levels of internet access and infrastructure, the region presents strong growth potential for satellite internet services. Recently, Starlink gained approval to launch its satellite internet service in Vietnam. Currently, Starlink is available in Malaysia, the Philippines, and Indonesia in Southeast Asia, as of August 2024.
Meanwhile, it is also preparing to enter India, having submitted key information to government authorities and awaiting final approvals.
Is Tesla a Buy, Sell, or Hold?
Automobile company Tesla (TSLA) is Musk’s only publicly traded company. Events involving his other ventures, like SpaceX, often impact Tesla’s stock. So far this year, TSLA stock has dropped 16% hit by multiple reasons such as Musk’s political ties, Tesla’s weak performance in Europe, among others.
Overall, Wall Street analysts remain neutral on Tesla stock. According to TipRanks, TSLA stock has received a Hold consensus rating, with 13 Buy, 12 Hold, and 10 Sell ratings. The average price target for Tesla shares is $351.38, suggesting a potential upside of 4% from the current level.
