
Elon Musk criticized Mukesh Ambani's influence in India after accusing oligarchs of blocking Starlink's launch despite five years of regulatory compliance, prompting a response from opposition leader Rahul Gandhi who referenced Gautam Adani, while Starlink remains unable to launch despite interim deals and licenses, and Tesla sales in India remain underwhelming.
AI-generated summary
Starlink signed interim deals with Jio and Airtel in March 2023 and received a license to launch in India in July 2023, but has been unable to commence operations due to frozen approvals over security concerns about terminal usage.
SpaceX founder Elon Musk on Thursday took a shot at Indian billionaire Mukesh Ambani, a day after he accused certain "oligarchs" of stalling the launch of his company's Starlink internet service in the country.
Musk said Starlink was not being allowed to launch in India despite having spent "five years complying with every single law and requirement" of the government.
"Is Ambani the real boss of India?" Musk questioned in a post, having blamed a day earlier "oligarchs" in the country for maintaining a "monopolistic chokehold on the Indian people."
Ambani's Jio is the largest telecom and internet service operator in India and, along with the other major operator, Airtel, controls about 80% of the market.
Musk's comment against Ambani caused a political stir in India, eliciting a response from India's leader of opposition, Rahul Gandhi, who has consistently alleged that the government is being influenced by powerful businessmen in India.
"Wait till you meet the other one," Gandhi said in a veiled reference to India's wealthiest businessman Gautam Adani, who has been a key target of the politician. "This is indeed troubling," Musk said in response to Gandhi.
Reliance Industries, Ambani's flagship company, did not respond to CNBC's request for comment.
In March last year, Starlink signed pacts with Ambani's Jio Platforms and India's second-largest telecom company Airtel to explore cross-selling the products and services of the U.S. company in India.
Following the interim deals, Musk's satellite internet business in July last year got a license to launch its services in India, before Airtel-backed Eutelsat OneWeb and Jio's similar services.
But Starlink could not launch. Bloomberg reported earlier this year that New Delhi had frozen approvals for Starlink over concerns that its terminals could be used despite the service not being licensed.
Meanwhile, Akash Ambani, the son of Mukesh and managing director of Jio Platforms, told shareholders in June that his company was planning to roll out low-orbit satellite communications in the country.
Jio is looking to set up set up a satellite network of around 1,600 LEO satellites and 23 ground stations to expand connectivity across India, according to local media reports. Starlink, on the other hand, has 11,000 satellites in orbit that provide service to people in over 170 countries and territories.
Akash Ambani on Thursday told Moneycontrol, a platform owned by the Reliance Group, that the company believes "India needs its own indigenous stack of technologies."
Satellite communication is not the only space where Musk's business plans in India have failed to take off. Tesla, which was launched last year in the South Asian country, has received an underwhelming response, with the company reportedly selling just a little over 1,000 cars since launch.
AI outlook — possibilities, not facts
Starlink will eventually receive final approval to launch in India
Likely · Within months
Tesla will increase its marketing and pricing efforts in India to boost sales
Possible · Within months

President Trump said the U.S. will not attack Iran before the midterm elections, while OpenAI reported $50 billion in annualized revenue, below the $68 billion previously reported, weighing on tech stocks. Vice President Vance suspended Microsoft and Adobe from a skilled worker green card program, and Elon Musk accused Indian oligarchs of blocking Starlink in India. Reliance Industries emerged as the top buyer of Venezuelan crude outside the U.S., supporting Trump's refinery project.

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