economy
Musk's Bad Week: Tesla Suffers Worst Slump Since 2022, SpaceX Drops Ahead of Starship Test Flight
Tesla shares plunged almost 18% this week after the company missed on earnings and turned cash flow negative.
TL;DR
- Tesla shares fell 18% in a week, their worst performance since 2022, closing at $313.03.
- SpaceX stock dropped 7.2% over five days, reaching its lowest point since its IPO.
- These declines erased approximately $130 billion from Elon Musk's wealth.
- Tesla's slump was triggered by disappointing second-quarter earnings, showing negative cash flow due to investments in robotaxis, humanoid robots, and chip fabrication.
- Analysts expressed concerns about Tesla's near-term profit growth consistency.
- SpaceX's stock has been declining for most of the past month, falling 43% from its peak.
- SpaceX is scheduled for the 13th test flight of its Starship rocket, V3, from Starbase, Texas.
- A successful Starship launch is vital for SpaceX's plans to expand its Starlink network and for future lunar and Mars missions.
- Musk was interviewed by The Economist, where he defended his support for right-wing and fringe political parties in various countries.
- He criticized the media's characterization of the 'far right' and referred to his supporters as 'normal people'.