Saturday, November 19, 2022

Elon Musk and Opportunism

The other day in class we discussed opportunism. As a reminder here is the definition: the taking of opportunities as and when they arise, regardless of planning or principle.

One of the many projects Elon Musk and SpaceX have been working on over the years is Starlink. Starlink is a satellite constellation providing internet access to over 40 countries. Just two days after Russia’s invasion of Ukraine, the Ukrainian government requested access to Starlink. And in just another two days the first terminal arrived in Ukraine on 28 FEB. In a seemingly altruistic act Elon Musk provided a country with vital internet access in their time of greatest need. But on October 14th his act may be seen in a different light, it could now be perceived as opportunism.

 

On this date Elon asked the Pentagon to start footing the bill for the service he was providing to Ukraine as SpaceX would no longer be able to fund the internet service to Ukraine. The tricky thing about his request was that 85% of the Starlink terminals sent to Ukraine were already paid for by the US, Poland, and other countries. On top of that the same countries cover 30% of the internet connectivity fees, SpaceX covering the other 70%. Elon also gave Ukraine his top service of $4,500 a month compared to what most users wanted, $500 per month service. Elon saw an opportunity in Ukraine, to increase the usage of his service and to get it partially paid for by the money pouring into Ukraine. Now as the country of Ukraine is dependent on this service, he has begun to ask the Pentagon to fully fund Starlink in Ukraine. Looking at situation, Elon obviously didn’t plan for this to happen and took the opportunity to support Ukraine, but he is now trying to profit from the conflict, showing a disregard for principle. He does mention that he just trying to avoid bankrupting Starlink, but he also provides services to 40 other countries, so in keeping Starlink afloat he looks to earn profit from it.


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