Italy could be nearing an agreement with Tesla’s (TSLA) CEO Elon Musk’s company, SpaceX, to secure advanced telecommunications for its government, according to an exclusive Bloomberg report. If the deal is finalized, this would be the largest project of its kind in Europe, according to the report. This deal could span five years and could be worth €1.5 billion ($1.6 billion). The deal has already gained approval from Italy’s Intelligence Services and Defense Ministry, though final terms remain under negotiation.
Stay Ahead of the Market:
- Discover outperforming stocks and invest smarter with Top Smart Score Stocks
- Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener
Deal Talks Initially Faltered
The discussions regarding the deal were initially stalled but gained momentum following Italian Prime Minister Giorgia Meloni’s recent meeting with President-elect Donald Trump in Florida. The agreement would provide Italy with encrypted communications for government use, military connectivity in the Mediterranean, and direct-to-cell satellite services for emergencies such as natural disasters or terrorist attacks.
The deal has been under review since the middle of last year. Despite its potential, the project has faced pushback from local officials concerned about competition with domestic telecom providers.
Italian Government Responds to the News
Meanwhile, the Italian government responded to the Bloomberg report, stating that Prime Minister Giorgia Meloni did not discuss the issue of SpaceX’s Starlink services for Italy during her U.S. visit.
Meloni’s office commented, “The prime minister’s office categorically denies, considering it ridiculous, that SpaceX was a topic during the meeting with U.S. President-elect Donald Trump.”
SpaceX’s Satellite Network Is Expanding Rapidly
SpaceX’s global Starlink satellite network has expanded rapidly and now serves over 4 million users in 100+ countries, including recent additions like Ghana and Argentina. SpaceX’s Starlink service for commercial applications includes residential internet service, maritime shipping and airlines.
Furthermore, SpaceX is now developing a product called Starshield for defense and sensitive applications.
What Is the Prediction for Tesla Stock?
Analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 13 Buys, 11 Holds, and nine Sells. Over the past year, TSLA has increased by more than 65%, and the average TSLA price target of $306.60 implies a downside potential of 25.3% from current levels.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
