Tesla Stock (TSLA) Sister company SpaceX fell on Wednesday as it suffers from set-offs and increased debt. The latter Elon Musk-led company is spending heavily on solving some of the engineering problems surrounding the Starship Rocket program. After it exploded in June with one of SpaceX’s rockets, about 20% of the engineering groups working on the company’s flagship Falcon 9 program were reassigned to Starship for six months, according to people familiar with the company’s plans.
This big spending is concerned about some investors in the SpaceX program, and despite it being a publicly available company, those worries are leaking to other publicly available Elon Musk Company Tesla. At the time of pressing, TSLA stock fell 3% on Wednesday, falling 2.7% completely over the last month. The decline is unfortunate as Tesla is about to expand its Robotaxi program to other USes.
Tesla Stock on the Decline: Could SpaceX make things worse?
Over the past six months, it has been rough due to Tesla’s TSLA stock, down 5.6% over that period. The launch of Robotaxi in June and expansion last month helped the company grow its revenue and stock. The winning streak ended late last week, but TSLA also took advantage of the sixth consecutive day of profit in the market. As a result, the stock is targeting breakouts driven by expected revenue growth and robust demand.
Equity analysts are divided into Tesla valuations. Target ranges from $276 to $410. The highest stock price target is $410 from Morgan Stanley. Meanwhile, the lowest forecast is $276 from KGI Securities. The current market price of Tesla (TSLA) stock is $340.84. However, most forecasts are that Tesla will continue to surpass expectations for the rest of August.
Much of the future of Tesla stocks and SpaceX’s success depends on what happens next. The company is aiming to begin its 10th test flight of the spacecraft as early as August 24th. While SpaceX can continue to absorb more test obstacles, the perception that the company is moving forward in Starship development is key to achieving long-term investments with NASA and its contractual agreements. As investors combine the success of both companies, further failures could be leaked to TSLA stocks.
