SpaceX Stock Plunges as Nvidia Deal Clouds Tesla Chip Plans
SpaceX's stock fell 8% in premarket trading on Tuesday as Morningstar questioned whether its exclusive deal with Nvidia signals a retreat from its plans to manufacture chips with Tesla through Terafab.
The research firm expressed concerns that the Nvidia deal could represent a shift away from Terafab, which is estimated to cost at least $55 billion for its first phase and potentially reach $119 billion in full buildout.
SpaceX CEO Elon Musk appeared to endorse a $10 trillion bull case for the company, tweeting two rocket emojis in response to predictions that SpaceX could become the world's first $10 trillion company.
Musk also stated that SpaceX should exceed $100 billion in annualized revenue by December and potentially reach $1 trillion in revenue by 2029.