open_in_newOriginal article
When push comes to Musk

When push comes to Musk

  • 16.03.2025 23:11
  • economictimes.indiatimes.com
  • Keywords: Tesla, Starlink

Tesla faces declining sales and competition in the EV market, while Starlink partners with Indian telecom companies to expand coverage. Political tensions and market dynamics are reshaping industries globally.

Tesla ServicesTSLAsentiment_dissatisfied

Estimated market influence

Tesla

Tesla

Negativesentiment_dissatisfied
Analyst rating: Neutral

Facing declining sales and market value, with competition from Tata, Mahindra, and BYD. Future implications include potential tech decoupling affecting its presence in key markets like China.

Starlink

Positivesentiment_satisfied
Analyst rating: N/A

Collaboration with Bharti Airtel and Reliance Jio may disrupt telecom landscape but offers opportunities for network expansion and rural coverage. Future implications include potential market dominance in satellite services.

Context

Analysis and Summary: Musk, Modi, and the Market Mayhem

Key Business Insights

  • Tesla's Decline:

    • Tesla's market value dropped by 54% since December 2024, the largest decline among S&P 500 companies.
    • Sales are declining, with buyer remorse growing due to an ageing product lineup and battery technology issues.
    • Facing stiff competition from Indian automakers Tata Motors and Mahindra, as well as China's BYD.

  • Starlink's Expansion in India:

    • Bharti Airtel and Reliance Jio signed deals with Starlink for satellite broadband services, marking a volte-face by Indian telecom giants who previously opposed cheap spectrum allocation to satellite players.
    • Investment: $500 million from Airtel and Jio into competing LEO constellations like Eutelsat OneWeb and SES.

  • US-China Trade Tensions:

    • Tesla is caught in the crossfire of US-China trade disputes, with regulators delaying approvals for its Full Self-Driving (FSD) software in China.
    • BYD is gaining market share in India and China through price drops, state subsidies, and integrating battery technology.

Market Implications

  • Telecom Industry Shift:

    • Starlink's partnership with Indian telcos could disrupt traditional broadband services, forcing operators to innovate in satellite-backed connectivity.
    • Premium pricing (10-14x higher than domestic providers) may not be a sustainable moat, as scale and market share can offset costs.

  • Global EV Market:

    • Tesla's challenges in China and the US highlight risks of tech decoupling and regulatory hurdles.
    • BYD's competitive pricing and state support position it as a growing threat to Tesla in emerging markets like India.

Competitive Dynamics

  • India's Auto Industry:

    • Tata and Mahindra are well-positioned to capitalize on Tesla's weaknesses, leveraging local production and government subsidies.

  • Satellite Services:

    • Starlink's global reach and partnerships with telecom giants could redefine the satellite broadband market, but questions remain about spectrum charges and commercial viability.

Long-term Effects and Regulatory Impact

  • Regulatory Uncertainty:

    • The Indian telecom sector faces potential regulatory changes as Starlink leverages its proximity to US trade policies to gain market access.

  • Strategic Shifts:

    • Tesla's focus on India may be delayed due to challenges in China and the US, while Starlink's partnerships could reshape global telecom infrastructure.

Conclusion

The text highlights the interconnected challenges and opportunities facing major players like Tesla, Starlink, and Indian telecom giants. While Tesla grapples with declining sales and regulatory hurdles, Starlink's expansion into India signals a broader shift in the telecom landscape. The interplay of US-China trade tensions, regulatory dynamics, and competitive strategies will shape long-term market outcomes for both EVs and satellite services.