Tesla's stock decline was driven by disappointing second-quarter earnings, which revealed a cash flow negative situation due to increased spending on ambitious projects like robotaxis and humanoid robots.
Analysts from Argus Research expressed concerns that this spending would hinder profit growth and shareholder returns in the near term, contributing to a 30% year-to-date decline in Tesla's stock, making it the worst performer among major tech companies. Meanwhile, SpaceX's stock has been on a downward trend since its IPO, with a 43% drop from its peak in June.
The company is preparing for its 13th test flight of the Starship V3 rocket, which is critical for its plans to expand the Starlink satellite network and support future lunar and Mars missions.
Musk's public comments during a contentious interview also drew attention, as he defended his political affiliations and support for various right-wing parties, which may impact public perception of him and his companies