Tesla (NASDAQ:TSLA) CEO Elon Musk recently witnessed the success of SpaceX’s satellite communications division, Starlink. The Pentagon has agreed to purchase Starlink’s satellite internet terminals to support Ukraine against the Russian invasion.
Citing security reasons, the Pentagon refrained from giving financial and other important details about the contract.
Interestingly, within a week of Russia’s incursion, Musk had sent Ukraine Starlink terminals. Since then, despite Russian strikes on the Ukrainian telecoms infrastructure, these terminals have aided in supplying steady communication and internet access for the troops.
SpaceX informed the U.S. Department of Defence in a letter in October that it could not continue to support Starlink services to Ukraine because it needed a $20 million monthly investment. Thus, the recent deal seems to be a positive factor for SpaceX, as it frees the firm from financial responsibilities.
Other Recent Developments in Musk’s Universe
Musk’s Neuralink, which develops implantable brain-computer microchips, has received approval from the U.S. Food and Drug Administration to test these chips on humans. Positive results from these tests could be a breakthrough for Musk.
In a negative update, Musk is facing a proposed class action lawsuit from investors accusing him of manipulating the price of the cryptocurrency Dogecoin on several occasions.
Moreover, the valuation of Twitter is said to have dropped to around $15 billion compared with $44 billion, the price at which Musk acquired the social platform in October 2022.
Is Tesla Stock a Buy, Sell, or Hold?
With too many businesses under his supervision, Musk has been questioned about how much time he can contribute to his EV company, Tesla. Nevertheless, the company’s vast network of supercharging stations and its move to gradually open them to other EV companies seem to bode well for long-term growth.
Overall, Wall Street is cautiously optimistic about Tesla, with a Moderate Buy consensus rating based on 14 Buys, 11 Holds, and four Sells. The average price target of $197.40 suggests downside of 4.9%.