After Tesla (TSLA) posted quarterly results last week, shares unexpectedly sank by so much that they touched a yearly low.
Tesla fell below $300 last Friday, in response to the stock market losing interest in the firm’s core EV business. Despite sales rising, the firm relied on price cuts. That will continue to pressure profit margins in the coming quarters. The CEO mentioned Cybercab production starts in Q2, but markets realize that Google’s (GOOG) Waymo has better prospects.
Waymo uses more sensors – not just cameras – for its self-driving technology. It employs camera sensors, radar, and LiDAR.
The company is projecting $25 billion in capital expenditure. That will increase later on this year.
SpaceX (SPCX) traded as low as $110.85 last week. The short float is piling on, at a 25.55% short float. If the bearish position gets too big, SPCX stock could enjoy a short squeeze. Markets relied on test rocket launches for the stock’s strength. But investor sentiment worsened for the satellite and rocket markets.
Rocket Lab (RKLB), Planet Labs (PL), and AST SpaceMobile (ASTS) are in a slump. Bears hold a nearly 23% short float against ASTS stock.
Viasat (VSAT) bucked the trend by holding its uptrend. Short float is comparably lower at below 10%.
Your Takeaway
Both Tesla and SpaceX rely on the boom in the AI sector to justify their valuation. Should demand for AI chatbots and agents weaken, both stocks could face selling pressure.
