Musk's bad week: Tesla suffers worst slump since 2022, SpaceX drops ahead of Starship test flight - CNBC

What the report says

CNBC reported that Elon Musk’s two closely watched companies had sharp share-price declines in the week ending Friday, with Tesla posting its steepest weekly fall since 2022 and SpaceX also losing ground before another planned Starship test. Tesla dropped about 18% to close at $313.03, while SpaceX fell 7.2% over five days to $115.07, according to the report.

The Tesla selloff followed second-quarter results released late Wednesday that came in below expectations. CNBC said the electric vehicle maker moved into negative cash flow as spending increased on projects including robotaxis, humanoid robots and a large chip fabrication effort. The article cited Argus Research analysts, who said those investments could weigh on free cash flow and make near-term profit growth harder to sustain. Tesla shares were reported to be down 30% for the year.

CNBC said SpaceX shares have been sliding since an initial rise after the company’s public listing, and were about 43% below their June 16 peak close. The company was preparing to attempt the 13th test flight of Starship from Starbase, Texas, after a weather delay and an earlier scrub tied to a booster issue during ignition. The upgraded Starship V3 rocket is central to SpaceX’s plans for Starlink expansion, NASA lunar missions and Musk’s longer-term Mars ambitions.

The stock moves reduced Musk’s wealth by about $130 billion, CNBC reported. The article also noted Musk’s public appearance in an interview with The Economist, where he defended his political endorsements after being questioned about support for far-right and fringe parties.