Musk’s association with the White House had already been linked to declining Tesla sales and stock value. Now, the ripple effects seem to be reaching SpaceX, particularly its Starlink satellite internet service.
Starlink has played a crucial role in Ukraine’s military communications since Russia’s 2022 invasion. However, concerns are mounting over potential disruptions to the service.
According to Reuters, U.S. officials have discussed the possibility of restricting Kyiv’s access to Starlink—claims Musk has denied. Despite this, his control over Ukraine’s connectivity has raised alarms, especially as both he and Trump have taken a more critical stance toward the country’s government.
In response to the uncertainty, European satellite internet providers are stepping in with alternative solutions.
Europe’s Alternatives to Starlink and Tesla
On Tuesday, Franco-British satellite operator Eutelsat announced discussions with the EU about expanding its internet service to Ukraine. Following the news, the company’s shares soared by 77%.
Meanwhile, French satellite company Thales issued a subtle warning about Starlink’s reliability. During a results briefing, CEO Patrice Caine emphasized the importance of government networks being stable and predictable.
“Government actors need reliability, visibility, and stability,” Caine stated. “A provider that, as we have seen, mixes economic decisions with political motivations is not one that reassures clients.”
Similar concerns have also impacted Tesla. Swedish EV manufacturer Polestar recently capitalized on Musk’s political controversy by offering Tesla owners discounts on its latest SUV leases.
According to Jordan Hofmann, head of sales for Polestar US, the response was overwhelming.
“This week saw some of the highest order days for Polestar 3,” he shared on LinkedIn.
Now, growing unease over Starlink could open yet another door for Musk’s competitors.