Shares of French satellite operator Eutelsat skyrocketed by almost 390% last week, driven by speculation that it may replace Elon Musk’s Starlink in Ukraine. Eutelsat’s stock price saw extreme volatility, surging 77% on Tuesday and 120% on Wednesday. From its closing price on Feb. 28 to last Friday, shares gained an astonishing 387%. The rally continued on Monday, with shares jumping over 22% by midday in Paris.
What is Eutelsat?
Eutelsat is a French satellite company specializing in data connectivity. It deploys satellites into low Earth orbit (LEO) and geostationary orbit (GEO) using rockets from providers like SpaceX. After merging with British firm OneWeb in 2023, Eutelsat became the world’s third-largest satellite operator by revenue, competing directly with Musk’s Starlink—a SpaceX subsidiary.
Why Are Eutelsat Shares Skyrocketing?
Last week, reports surfaced that Eutelsat was being considered as a potential replacement for Starlink’s services in Ukraine. Since Russia’s invasion, Starlink has been critical in providing Ukraine’s military with satellite-based internet. However, recent geopolitical tensions between the U.S. and Ukraine have raised concerns over continued access to Starlink’s network.
A major shift occurred when President Donald Trump, following a dispute with Ukrainian President Volodymyr Zelenskyy, paused all military aid to Ukraine. This move coincided with U.S. discussions about limiting Ukraine’s Starlink access unless a deal was reached for the U.S. to secure Ukraine’s rare earth minerals.
On March 4, Eutelsat announced talks with the European Union to provide additional internet access to Ukraine. This statement, combined with rising speculation that Eutelsat could replace Starlink, fueled the dramatic surge in its stock price.
It remains unclear whether Eutelsat will fully replace Starlink in Ukraine. However, the company has confirmed discussions with EU officials about expanding its services.
“Everyone is asking us, ‘Can you replace the large number of Starlink terminals in Ukraine?’ and we are evaluating that,” Eutelsat CEO Eva Berneke told Bloomberg.
Eutelsat has the infrastructure to scale up operations, with a fleet of 35 GEO satellites and an LEO constellation of 600+ satellites.
Political Tensions & Starlink’s Future in Ukraine
The debate over Starlink’s role in Ukraine escalated over the weekend when Elon Musk and U.S. Secretary of State Marco Rubio clashed with Polish Foreign Minister Radoslaw Sikorski on social media.
- Musk warned that Ukraine’s entire frontline could collapse without Starlink.
- Sikorski responded that Poland pays for Starlink services in Ukraine and may seek alternative suppliers if Starlink becomes unreliable.
- Rubio denied that Starlink access would be cut, urging gratitude toward Musk.
- Musk fired back, calling Sikorski a “small man.”
While Eutelsat’s stock rally has been fueled by speculation, its discussions with the EU signal potential expansion in Ukraine. If U.S.-Ukraine tensions escalate further, Eutelsat could emerge as a viable alternative to Starlink for Ukraine’s military and government communications.
As the geopolitical landscape shifts, investors are closely watching Eutelsat’s next moves, with further stock volatility expected in the coming weeks.
