As Elon Musk was saluting Donald Trump in the US Congress yesterday, the South African's divisive politics were opening new doors to his business rivals in Europe.
Musk's role in the White House had already been linked to Tesla sales and stock tanking. Now, the repercussions appear to have spread to SpaceX.
The fallout centres on the company's Starlink satellite internet service.
The network has provided a vital communications system to Ukraine's military since Russia's full-scale invasion began in 2022. But concerns are now growing that the service could soon be disrupted.
According to Reuters, US officials recently raised the prospect of cutting off Kyiv's access to Starlink. Musk, the CEO of SpaceX, refuted the report. Nonetheless, his control over Ukraine's connectivity has caused growing alarm. The anxieties have escalated as he and Trump have become increasingly critical of the country's government.
Amid the rising tensions, European satellite internet providers have proposed replacing Starlink with their own systems.
Europe's rivals to Starlink and Tesla
On Tuesday, Franco-British rival Eutelsat said it was in talks with the EU about extending its internet service to Ukraine. By the day's end, shares in the company were up by 77%.
As the stock surged, French satellite firm Thales fired another apparent warning about Starlink. Speaking at a results briefing on Tuesday, Thales CEO Patrice Cain pointed to the risks of governments relying on certain network providers.
“Government actors need reliability, visibility and stability,” Caine said. “A player that — as we have seen from time to time — mixes up economic rationale and political motivation is not the kind that would reassure certain clients.”
Similar concerns have been raised about Musk's impact on Tesla. Capitalising on the blowback from his political moves, Swedish EV maker Polestar offered Tesla owners a discount on leases for its latest SUV.
Jordan Hofmann, head of sales for Polestar US, said the response had been “incredible.”
“This week saw some of the highest order days for Polestar 3”, he wrote on LinkedIn.
Now, concerns over Starlink may have created another opening for Musk's competitors.