Billionaire investor Elon Musk’s SpaceX is planning to invest up to $1.5 billion in Vietnam soon, according to the country’s government. The positive update follows a long pause to similar talks that ended in 2023, although discussions resumed later. A report on the government portal on September 25 noted President To Lam saying, “The Vietnamese government is considering the (investment) proposal of SpaceX.” The statement also added that Lam has asked Musk to consider completing the investment procedures by coordinating with domestic partners.
Talks Continue on SpaceX’s Investment in Vietnam
SpaceX’s Starlink is planning to provide its low-Earth orbit satellite network and communications services in Vietnam. The country has nearly 100 million people, acting as a massive consumer base for Starlink’s services. The mountainous terrain in Vietnam and aging equipment pose a risk to optic fiber undersea cables. As such, satellite services could act as an apt alternative to provide uninterrupted internet services to the nation. In the past months, SpaceX government affairs official Tim Hughes was also heard saying that Starlink’s satellite services were aimed to primarily boost the education and disaster prevention systems in the country.
Vietnamese President Lam recently met Hughes in New York, where further discussions took place. The details of the exact nature of the investment remain unknown at the time. Talks had paused last year, as negotiations on the ownership of the company that SpaceX would set up in Vietnam remained unresolved. Vietnam limits foreign companies from owning a majority investment in companies set up in the nation, allowing a maximum of 50% ownership.
Other American companies such as Meta’s Facebook (META), Alphabet (GOOGL) (GOOG), and Apple (AAPL) are also keen on capturing the growth prospects in Vietnam to expand their global footprint.
Of the several companies under Musk, electric vehicle (EV) maker Tesla is the only listed company. News and events in the remaining companies, including The Boring Company, SpaceX, and X have often impacted Tesla’s stock price.
Is Tesla Stock Rated a Buy?
Just yesterday, Musk confirmed that Tesla’s most awaited “We, Robot” robotaxi event will be held on October 10 in Los Angeles.
Even so, analysts prefer to remain sidelined on Tesla stock due to the slowdown in EV demand and growing competition in the EV space. Currently, on TipRanks, TSLA stock has a Hold consensus rating based on 12 Buys, 16 Holds, and eight Sell ratings. The average Tesla price target of $210.56 implies 18.1% downside potential from current levels. Year-to-date, TSLA shares have gained 3.4%.
