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Elon Musk Plans to Bring Starlink to South Africa and Invest in Tesla Battery Production · Elon Musk Podcast

• 0:01
  Hey everybody. Welcome back to the Elon Musk
• 0:04
  Podcast. This is a show where we discuss
• 0:07
  the critical crossroads that shape SpaceX, Tesla X, The
• 0:11
  Boring Company, and Neurolink. I'm your host, Will Walden.
• 0:15
  So what do Elon Musk, South Africa, Starlink, and a Tesla
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  battery plant have in common now?
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  Those parts of this question set the stage for a story that
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  intertwines business, politics, and Musk's global ambitions for
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  numerous projects. Elon Musk has reportedly engaged
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  in discussions with South African president about a
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  potential agreement that could see Spacex's Starlink service
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  made available in South Africa in exchange for a Tesla battery
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  plant. The reported deal hinges on a
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  relaxation of South Africa's regulations and demonstrates
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  Musk's growing influence in both US and international affairs.
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  Now. Elon Musk was born in Pretoria,
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  South Africa, and is said to have met with the president to
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  address 1 of the major hurdles preventing SpaceX from rolling
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  out Starlink services in the country.
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  South Africa's rules requiring 30% black ownership for
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  companies operating in the telecommunications sector.
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  This policy, part of the country's broader Black Economic
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  Empowerment framework, aims to correct historical economic
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  imbalances caused by apartheid but poses challenges for foreign
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  entities like SpaceX. Now, according to sources cited
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  by Bloomberg, Musk requested the South African government ease or
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  eliminate the 30% equity rule to enable Starlink's entry into the
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  market. Now, Starlink, which provides
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  satellite based Internet, has already been introduced in
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  several African nations, including Nigeria, Ghana and
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  Botswana. However, in South Africa, the
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  current legislation effectively blocks its operations unless
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  Musk's company partners with local entities to meet the
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  ownership requirement. Now, South African officials are
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  reportedly weighing alternative solutions.
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  One proposal would allow foreign firms to bypass the 30%
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  ownership mandate in exchange for commitments to invest in
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  local industries and create jobs.
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  A Musk's SpaceX might agree to such terms if a mutually
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  beneficial agreement can be reached.
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  For the president, the potential deal represents an opportunity
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  to attract greater investment in South Africa's economy.
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  And economy is still struggling with high unemployment rates and
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  sluggish growth. Now, the negotiations have taken
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  an added significance due to the president's focus on bringing
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  Tesla into the fold. The South African president is
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  said to be urging Musk to establish a Tesla battery
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  production facility in the country, which could bolster
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  local manufacturing and position South Africa as a key player in
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  the global renewable energy supply chain.
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  And while details of Tesla's interest in such a project
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  remain unclear, the possibility of pairing Starlink's access
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  with Tesla's involvement as a new dimension to the talks.
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  But this isn't the first time that Musk has been approached by
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  governments with similar offers. In Indonesia, for example,
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  officials sought a deal that would have included both
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  Starlink expansion and a Tesla electric vehicle battery plant.
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  While Tesla ultimately declined the proposal, citing the
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  distance between Indonesia and its primary manufacturing hubs,
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  the offer underscores a growing trend of countries leveraging
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  Musk's multiple ventures to address local infrastructure
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  needs. Needs now In South Africa, the
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  stakes of a potential deal are particularly high given the
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  increasing demand for reliable Internet connectivity across the
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  continent. And while Starlink has already
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  made strides at expanding access in underserved areas, its global
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  rollout often faces regulatory hurdles.
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  Many governments protect domestic Internet providers
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  through legislation, creating barriers for the satellite
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  service. Still, countries like Nigeria
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  and Botswana have embraced Darlink as a way to bridge
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  digital divide, particularly in rural regions.
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  Now, beyond the technical and economic challenges, Musk's
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  involvement in South African affairs is complicated by his
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  growing political prominence in the United States.
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  Following his highly publicized support of Donald Trump during
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  the US 2024 presidential election, Musk has emerged as a
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  key figure in American political and governmental circles.
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  Reports indicate he contributed over $200 million to Trump's
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  campaign, a move that has drawn both praise and scrutiny.
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  And since Trump's victory, Musk has taken on the rules,
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  including heading an external committee tasked with auditing
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  federal spending and participating in international
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  discussions with leaders like Ukrainian President Vladimir
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  Zelensky. Now, Musk's political activities
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  raise questions about how his actions on the global stage
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  might influence his dealings in South Africa.
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  While Starlink has been positioned as a service aimed at
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  improving connectivity in remote and underserved areas, it is
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  also increasingly viewed as a strategic asset in conflict
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  zones like Ukraine and Yemen. Starlink has played a critical
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  role in maintaining communications infrastructure, a
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  factor that is highlighted its importance in international
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  geopolitics. Additionally, Spacex's growing
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  status as a defense contractor for the US government has LED
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  some to question the implications of Musk's private
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  negotiations with foreign leaders.
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  Now, despite these complexities, Musk's interest in bringing
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  Starlink to South Africa aligns with his broader goal of
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  expanding the services global footprint.
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  Starlink is already available in over 100 countries, and its
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  adoption continues to grow despite the challenges posed by
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  entrenched telecom monopolies and regulatory barriers.
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  In Africa, where Internet penetration rates lag behind
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  much of the world, satellite based services like Starlink
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  offer a potential lifeline for millions of people.
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  Musk's connection to South Africa adds another layer of
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  significance to the ongoing discussions.
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  Though he left the country as a teenager, he has often spoken
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  about his roots and maintain a degree of interest in South
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  African affairs. And by engaging directly with
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  the president, Musk appears to be leveraging his influence and
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  resources to negotiate terms that could reshape the tech and
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  energy landscape in his home country.
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  The potential deal between Musk and South Africa shows glutter
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  broader trends globally in how governments and private
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  enterprises are collaborating or clashing over technology and
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  infrastructure. Now, SpaceX and Tesla both push
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  boundaries and innovation in different ways, and their
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  ability to navigate complex regulatory environments will
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  likely determine the success of these new ventures all over the
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  world. For South Africa, securing
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  investment from one of the world's most influential
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  entrepreneurs could signal a turning point in efforts to
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  revitalize its economy. And with no formal agreement
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  being announced, the ongoing talks between Musk and South
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  African officials highlight the interplay between business,
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  politics and national interests. Whether the negotiations result
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  in Starlink's entry into South African market or the
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  establishment of a Tesla battery plant remains uncertain.
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  What is clear, though, is that Musk's role on the world stage
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  continues to grow. His influence is huge, blending
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  technology with diplomacy in ways that could shape the future
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  of connectivity and energy in South Africa and all over the
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  globe. And Speaking of being worldwide,
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  we have a link to our Discord in the show notes here.
• 7:36
  So please join the worldwide crew of the Doge Pack and hang
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  out with other people that are fans of Elon Musk, discuss the
• 7:46
  latest topics and also contribute to the show.
• 7:50
  So take that into consideration. Click that link and join us for
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  more conversation about Elon Musk.
• 8:03
  Hey, thank you so much for listening today.
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  I really do appreciate your support.
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  and each other and I'll see you tomorrow.