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TradingKey - Global electric vehicle manufacturer Tesla (TSLA) is experiencing its toughest week since 2026. Impacted by a sharp decline in second-quarter fiscal 2026 operating margins and free cash flow turning negative, the stock has fallen more than 16% this week, marking its largest weekly drop since December 2025.

On July 23 ET, SpaceX (SPCX) shares hit a new all-time low, dropping to a minimum of $110.85 before rebounding. As of press time, the stock was up approximately 1% at $116.4. Gene Munster, founder of Deepwater Asset Management, stated on Wednesday that the likelihood of a merger between SpaceX and Tesla (TSLA) now appears greater. In a post on the social media platform X, he noted, "Before the conference call, I believed there was an 80% chance of these two companies merging in the next few years. Now, I have raised that probability to 90%."

TradingKey - Following the completion of SpaceX's (SPCX) initial public offering, the value of the stake held by Google parent Alphabet (GOOGL) has drawn significant market attention. Based on SpaceX's post-IPO market capitalization and Alphabet's approximately 5% stake, the investment is currently valued at about $94 billion, making it one of Alphabet's most significant investments.

TradingKey - On July 22, Eastern Time, Deepwater Management analyst Gene Munster stated that the likelihood of a merger between SpaceX (SPCX) and Tesla (TSLA) is increasing. After the topic of a merger was formally discussed during Tesla's second-quarter earnings call, Munster raised the probability of the two companies merging within the next few years from a previous 80% to 90%.

TradingKey — On July 22, Eastern Time, SpaceX (SPCX) shares hit a new record low, falling 5.32% to $116.97 as of publication. Reports indicate that SpaceX AI is further increasing its investment in data center construction, with a scale comparable to the gigawatt-level capacity of the existing Memphis campus. However, the company's Q1 AI-related capital expenditure has surged to $7.7 billion, approximately three times the amount from the same period last year. Morgan Stanley analysts predict that xAI will consume a total of up to $120 billion in cash between 2026 and 2027—a figure nearly 1.6 times the $75 billion raised in SpaceX's IPO.

TradingKey - Recently, SpaceX (SPCX) CEO Elon Musk publicly warned investors shorting the company, stating that institutions holding large long-term short positions in SpaceX have an "extremely low probability of survival." Musk also noted that if SpaceX achieves its established development goals, there is still significant room for growth in the company's long-term value.



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