The SpaceX situation in Ukraine is getting more complicated, even as Starlink service appears to have been fully restored.
On Wednesday, SpaceX imposed restrictions on Ukraine's use of Starlink -- or Starshield -- essentially shutting the service off if the equipment is traveling more than 100 miles per hour, which means Starlink won't work on fast-moving drones, limiting Ukraine's ability to hit some Russian targets.
Starlink is SpaceX's space-based broadband product using more than 11,000 satellites in low-Earth-orbit to deliver high-speed internet access to millions of customers in more than 160 countries. Starshield is the military version of Starlink.
The move came after both SpaceX CEO Elon Musk and President Donald Trump were critical of Ukraine's recent military actions.
SpaceX didn't respond to a request for comment about the service change. Musk said on X that Starshield is controlled by the U.S. government, shifting blame for the service issue to Trump. "Any limits on speed or usage are decided by the U.S. military and ultimately POTUS," said Musk.
Bloomberg reported Thursday that service was restored and that Trump wasn't responsible for the change. The Pentagon didn't respond to a request for comment.
The situation leaves investors and politicians unsure what happened. Republican Sen. Thom Tillis asked Musk for an explanation on X and later posted that the "strategic snafu may have occurred more locally within DoD Starshield systems, not with Starlink or SpaceX."
It may be awhile before investors get a full picture of what happened. Regardless, the incident will likely increase scrutiny of SpaceX and Musk's outsized role in using space-based technology for military operations.
The U.S. military and Ukraine don't have many options. SpaceX dominates the global launch industry, accounting for roughly two-thirds of all orbital launches outside of China. What's more, roughly two-thirds of all satellites in operation around the Earth are SpaceX Starlink satellites.
The Ukraine issue appeared to hit SpaceX stock on Thursday. Shares fell 2.3% and failed to finish in the green despite a late-day rally that sent the Nasdaq Composite from a daily low of 26,309 to 26,713, up 0.1% on the day.
CoreWeave's rising bond yield shook investors' confidence in the AI trade. Shares fell more than 15% on Wednesday and traded below $60 early on Thursday before closing at $69.69, up 5.9%.
SpaceX stock was up 1.7% in premarket trading on Friday at $151.13, while S&P 500 and Dow Jones Industrial Average futures were up 0.1%.
Tesla was helping shares some. It unveiled its newest Roadster, which incorporates thruster technology from SpaceX. At a Roadster launch event, the car completed some unbelievable maneuvers, including driving upside down and literally jumping over other cars.
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