Tesla (TSLA) Stock Plummets as SpaceX Costs Skyrocket - Investors Panic Over Musk’s Mars Money Pit

Tesla shares are taking a brutal beating today as investors flee Elon Musk's electric vehicle giant. The culprit? SpaceX's ballooning expenses are bleeding over into Tesla's balance sheet—and Wall Street isn't having it.

SpaceX Drain Hits Tesla's Bottom Line

Rocket science doesn't come cheap, and Tesla shareholders are learning that lesson the hard way. Musk's interplanetary ambitions are creating gravitational pull on TSLA's stock price, dragging it down as SpaceX burns through cash faster than a Falcon 9 on re-entry.

Market analysts are sounding alarms about the financial spillover effect. When one Musk company sneezes, another catches cold—and right now Tesla investors are feeling downright feverish about those Mars colonization costs.

Another classic case of visionary ambition meeting shareholder reality. Because nothing says 'solid investment' like betting on electric cars to fund rocket ships to a planet that'll kill you in 90 seconds.

Tesla Stock on the Decline: Could SpaceX Make Things Worse?

The last six months have been rough for Tesla’s TSLA stock, trading down 5.6% in that span. The Robotaxi launch in June and expansion in the last month have helped the company’s revenue and stock growth. While the streak ended late last week, TSLA also rode a six-day streak of gains on the market. As a result, the stock is targeting a breakout driven by anticipated earnings growth and robust demand.

Stock analysts are split on Tesla’s valuation; targets range from $276 to $410. The highest stock price target sits at $410 from Morgan Stanley. On the other hand, the lowest forecast comes in at $276 from KGI Securities. The current market price for Tesla (TSLA) stock is $340.84. However, most projections are that Tesla will continue to outperform expectations for the remainder of August.

Much of Tesla’s stock future, and SpaceX’s success, will hinge on what happens next. The company is aiming to launch its tenth test flight of Starship as early as Aug. 24. SpaceX may be able to continue to absorb more testing failures, but the perception that the company is moving forward in Starship development will be key to its long-term investment success and fulfilling contractual agreements with NASA. Any more failures could further leak into TSLA shares as well, as investors tie the success of the two companies together.