SpaceX (SPCX) Shares Gain Ground Following Musk’s Power Turbine Manufacturing Announcement

Key Points Shares of SpaceX gained 1.6% Monday following Elon Musk’s disclosure that the company intends to begin manufacturing power-turbine castings and blades. GE Vernova shares declined 1.5% while Howmet Aerospace tumbled 7.5% following the announcement. ARK Invest purchased approximately $27 million worth of SPCX shares; Wall Street analysts maintain a “Moderate Buy” consensus with a $220.20 mean price target. The company’s most recent quarterly results showed 91.9% revenue expansion year-over-year and exceeded EPS projections by $0.17. An upcoming share unlock scheduled for September 9 will increase the publicly traded float to approximately 17.7%, potentially introducing downward pressure. Shares of SpaceX (SPCX) advanced 1.6% during Monday’s trading session, reaching an intraday peak of $144.13 before settling at $143.69, following CEO Elon Musk’s revelation of the company’s intention to enter the power-turbine casting and blade production market. Space Exploration Technologies Corp., SPCX Through a social media post, Musk indicated that “Casting of blades and vanes is the most limiting factor for power until solar AI satellites are launched at scale.” Markets interpreted this statement as a clear indication that SpaceX intends to compete in sectors dominated by established industrial manufacturers. Market participants responded swiftly. Shares of GE Vernova slid 1.5% while Howmet Aerospace experienced a sharper 7.5% decline during the same trading session. In-house component production is already central to SpaceX’s business model. According to RBC analyst Ken Herbert’s estimates, the company manufactures approximately 90% of its rocket components internally, significantly higher than Boeing’s roughly 40% for aircraft production. This vertical integration strategy forms the foundation of SpaceX’s operational approach. Adrian Helfert, chief investment officer at Westwood Holdings Group, offered this perspective: “We’re going through a new consideration in manufacturing production.” He noted that conventional approaches emphasizing lean supply chains and outsourced manufacturing are facing increasing scrutiny. Additionally, the company is constructing a Texas-based foundry dedicated to gas-turbine component production, which may help alleviate power-equipment bottlenecks related to its AI data center initiatives. Wall Street Ratings and Institutional Activity Cathie Wood’s ARK funds acquired approximately $27 million in SPCX shares during Monday’s session. Institutional ownership has expanded throughout Q2, with firms such as Hyperion Asset Management establishing a new position valued above $201 million. Among Wall Street analysts, Bernstein has maintained its Outperform rating while Morgan Stanley continues projecting additional upside potential. Cantor Fitzgerald has set a $246 price objective, and Bank of America maintains a Buy rating with a $235 target. However, not all analysts share this optimism. Citigroup downgraded the stock to Sell in August, and DZ Bank initiated coverage with a Sell rating alongside a $100 price target. The aggregated consensus from 41 analysts stands at “Moderate Buy” with a mean price objective of $220.20.