While Elon Musk is likely best known for Tesla (TSLA), he’s also known for Starlink, which I’m actually using right now. But Starlink has competitors; Amazon (AMZN) is working on an equivalent known as Project Kuiper, and now, there’s a whole new entrant in the field.
China recently launched the first installment of its “Thousand Sails” program, a full satellite constellation that will, once complete, help provide worldwide internet coverage in much the same way as Starlink and Project Kuiper operate.
Reports note that the Chinese constellation will ultimately feature 15,000 satellites, though it might prove slow going to actually get them aloft. China looks to get 648 such satellites in space by 2025, which will leave them 14,352 satellites short of the goal. But once it’s done, China expects a global-coverage internet system accessible anywhere, though one wonders if it will come with as many censorship programs and site blocks as the current Chinese internet does.
Already Far Behind
Worse, the Chinese project is already lagging far behind any competitor. Starlink is already live and operational in many places; like I said, I’m using it right now. Project Kuiper expects to go into beta testing by the end of the year, working with seven countries in South America to offer up the service.
Meanwhile, the Chinese project is expected to be a little over 4% operational by 2025. At that rate, assuming it can reach another 4% every four months, China’s system should be in orbit somewhere around 2033. It should be able to assure itself a market from local patriots and anyone it can force into accepting the service, but given China’s less-than-stellar reputation for quality, it’s easy to wonder how long it will take after the satellites go aloft for it to work.
Is Tesla Buy or Sell?
Although you can’t invest directly in Starlink because it is privately held, you can invest in Musk’s Tesla operations. When turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 11 Buys, 12 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 20.62% loss in its share price over the past year, the average TSLA price target of $213.92 per share implies 7.12% upside potential.
