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

It has been a challenging week for Elon Musk, as both Tesla and SpaceX experienced substantial stock declines. Tesla shares dropped 18% over the week, ending at $313.03 on Friday, marking the steepest weekly fall since 2022. Meanwhile, SpaceX's stock fell 7.2% to close at $115.07, its lowest value since the company's IPO last month. These losses have collectively erased approximately $130 billion from Musk's net worth, just weeks after he was recognized as the world's first trillionaire. The decline in Tesla's stock was primarily driven by disappointing earnings reported late Wednesday. The electric vehicle manufacturer revealed that it had turned cash flow negative due to increased expenditures on ambitious projects such as robotaxis, humanoid robots, and a significant chip fabrication facility. Analysts from Argus Research highlighted in a report that these developments would likely hinder free cash flow and impede earnings growth, stating, "We believe it will be nearly impossible for Tesla to generate any consistency in profit growth in the near-term." Currently, Tesla's stock is down 30% for the year, making it the poorest performer among the major tech companies. On the other hand, SpaceX's stock has been on a consistent decline for the past month, following an initial surge post-IPO. The shares have experienced four declines in the last five weeks and are now approximately 43% lower than their peak value on June 16. This Friday, SpaceX is scheduled to attempt its 13th test flight of Starship, the largest rocket ever constructed. The launch is set to occur from the company’s facility in Starbase, Texas, and the upgraded Starship V3 is vital for SpaceX’s ambitions to expand its Starlink satellite network. The test flight was initially planned for Thursday but was postponed due to unfavorable weather conditions. Last week, a previous test flight was also scrubbed when the rocket’s booster triggered a hold, leading to an engine shutdown just as ignition was commencing. A successful launch of Starship V3, which stands at roughly 400 feet tall, would mark a significant milestone for SpaceX following its IPO. The company aims to use Starship for missions that will return U.S. astronauts to the Moon and eventually transport humans to Mars. In addition to his business challenges, Musk made headlines this week with a controversial interview with The Economist, where editor Zanny Minton Beddoes questioned him about his support for various political factions, including far-right groups. Musk defended his positions and criticized traditional media for their portrayal of these groups, claiming they represent "normal people."