In This Article:
The first quarter of 2025 is in the books, and it’s impossible to deny that it went very poorly for Elon Musk.
The founder of Tesla (TSLA) temporarily eased shareholder anxiety when he announced plans to scale back his work with the Department of Government Efficiency (DOGE) and spend more time helping run his company. Since then, however, shares have dipped back into the red, indicating that the market isn’t convinced a turnaround is coming for TSLA.
💵💰Don't miss the move: Subscribe to TheStreet's free daily newsletter 💰💵
Tesla stock is still down more than 30% for the quarter due to the company’s dwindling sales, which can be attributed to backlash against Musk. His political affiliations have led many consumers to turn their backs on Tesla, severely compromising its dominance in the electric vehicle (EV) market.
The bad news for Musk doesn’t stop at Tesla, though. A prominent rival recently announced a milestone that could negatively impact one of his other companies.
One of Musk’s rivals might beat him in an important race
While much of the nation’s focus has been on Tesla over the past few months, things haven’t gone so well for another company he runs. SpaceX is facing an increasingly complicated industry, as another leading tech company establishes itself as a sizeable threat.
Related: Elon Musk gets more bad news as rival launches the anti-Tesla
Amazon (AMZN) is more often associated with e-commerce and entertainment streaming than space technology or satellites. But the tech conglomerate recently made an announcement that likely made Musk extremely nervous: It has kicked off the launch of its internet-from-space network.
In 2021, Amazon joined forces with Verizon to create a satellite internet system that could challenge SpaceX’s Starlink. While the launch has been delayed, it finally happened this week when Project Kuiper, a satellite-internet subsidiary of Amazon, launched the first 27 satellites of its broadband constellation network.
“The satellites are the first of 3,236 that Amazon plans to send into low-Earth orbit for Project Kuiper, a $10 billion effort unveiled in 2019 to beam broadband internet globally for consumers, businesses, and governments — customers that SpaceX has courted for years with its powerful Starlink business,” reports Fast Company.
If Amazon’s expansion into this field continues, it could usher in a monumental change for the company. Already a leader in many areas, it would become known as a major telecommunications provider as its network helped provide broadband access to rural parts of the U.S.