India’s telecom regulator intes to suggest that satellite broadband spectrum be allocated for around five years in order to gauge initial market uptake, defying Elon Musk’s Starlink, which is seeking a 20-year permit, said a senior government source.
TakeAway Points:
- Musk is eager to start services in India and has inked distribution agreements.
- Starlink has applied for a 20-year satellite spectrum broadband license.
- India wants to test the market and grant shorter licenses, according to an official.
- Tesla shares rallied for a second day after registering its worst day in nearly five years.
- Shares dropped 15% on Monday as tariff uncertainty and growth fears overtook Wall Street.
Satellite permits in India to last for 5 years
According to a senior government source, India’s telecom regulator is to recommend that satellite broadband spectrum be allotted for about five years in order to assess initial market uptake, in contrast to Elon Musk’s Starlink, which is requesting a 20-year permit.
The Telecom Regulatory Authority of India (TRAI) is currently working on key recommendations to the federal government, including a time frame and pricing of satellite spectrum, which will be administratively allotted.
Tesla shares bounces for second day after deep decline
Tesla shares rose for a second straight day in early trading Wednesday after the stock recorded its worst day since 2020 earlier in the week.
Shares jumped nearly 8%, building on a 3.8% gain from Tuesday.
The electric vehicle stock plunged 15.4% on Monday for its worst session since September 2020 as investors sold popular technology shares and markets tumbled on rising recession fears and tariff uncertainty. The move pushed the Nasdaq to its worst day since 2022 and erased $750 billion in market value among the tech megacaps.
Market value stand lately
Tesla has tumbled in recent weeks, shedding more than 40% in market value since President Donald Trump took office. Shares rallied in the postelection Trump trade on bets that CEO Elon Musk’s close ties to the president would benefit the company.
Tariff concerns have added fuel to that fire as a potential trade war threatens two key supplier markets. That pushed the company to its longest weekly losing streak in its 15-year public market history.
Since Trump’s inauguration, Musk has become a key face of the new White House administration and close advisor of the president as he looks to reduce government spending, leading the so-called Department of Government Efficiency.
Trump said Tuesday he plans to buy a Tesla in support of Musk as Tesla locations around the country see protests and demonstrations.
X platform outage
Tesla has also dealt with brand erosion stemming from incendiary political rhetoric on Musk’s social media platform X. The platform suffered several outages on Monday. Meanwhile, Musk’s aerospace and defense company SpaceX is currently investigating two test flight explosions.
The company also faces a divided Wall Street, as bears point to rising EV competition, declining new vehicle deliveries and the effects of tariffs on the company’s near-term business. Bulls still have faith in Musk and his promise to unveil an affordable new model EV and start a driverless ride-hailing service later this year.
A recent investor survey found that 85% of respondents believed politics were hurting the company. Shares have lost more than a third in value since the start of the year.
