Elon Musk’s Starlink is reportedly getting a new rival as several European companies are banding together to challenge the satellite internet constellation operator. Insider sources claim that Airbus (EADSF), Thales (TCFP), and Leonardo (FINMY) plan to create a joint company to challenge Starlink. The report says this effort will be based on MBDA, which is owned by Airbus, Leonardo, and BAE Systems (BAESF).
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According to the latest reports, the three companies intend to collaborate on this satellite endeavor rather than sell assets to a single unit. They also have a codename ready, calling the effort “Project Bromo.” Despite all of this talk, investors will keep in mind that this team-up is still in its early stages and likely won’t manifest for several years.
What This Means for Starlink
Starlink doesn’t have anything to worry about from this potential European rival, for now. With the collaboration still in its early stages, Musk’s company is clear to continue dominating the high-speed satellite internet sector with its more than 4 million subscribers.
However, that doesn’t mean there aren’t other companies looking to capture the satellite internet constellation market. Kuiper Systems is among these, and it’s not one to ignore with Amazon (AMZN) as its parent company. Granted, this also benefits SpaceX, the parent company of Starlink, as Amazon has ordered rocket launches from it to send Kuiper Systems’ satellites to space.
How to Invest in Starlink
Starlink can’t be invested in directly, and neither can SpaceX, for that matter, as it’s a private company. Instead, traders could focus their investments on investors of the space company. Bank of America (BAC) and Alphabet (GOOGL) have both invested in Starlink.
If investments in Bank of America and Alphabet don’t interest traders, there is another option. Taking a stake in Tesla (TSLA), another of Musk’s companies, is an alternative way to gain exposure to Starlink, but that comes with risks as well.
The analysts’ consensus rating for Tesla is Hold based on 11 Buy, 14 Hold, and nine Sell ratings over the last three months. With that comes an average price target of $233.67, representing a potential downside of 33.71%.
