Tesla stock suffers worst slump since 2022, SpaceX drops ahead of Starship test flight

Tesla shares plunged 18% this week, marking the automaker's worst weekly slump since 2022. Concurrently, Elon Musk's space exploration company, SpaceX, saw its stock drop 7.2%. These declines collectively reduced Musk's net worth by an estimated $130 billion.

The downturn in Tesla's stock followed weaker-than-expected second-quarter earnings released Wednesday. The electric vehicle maker reported negative free cash flow due to increased spending on future projects, including robotaxis, humanoid robots, and a large chip fabrication plant. Analysts have expressed concerns that this spending will pressure free cash flow and delay near-term earnings growth.

Tesla is currently the worst performing among major technology companies this year, with its stock down 30% year-to-date. The stock closed at $313.03 on Friday.

SpaceX's stock has been on a steady downward trend over the past month since its initial post-IPO pop. The shares have fallen in four of the last five weeks and are approximately 43% below their peak close on June 16. The stock closed at $115.07 on Friday.

SpaceX is set to conduct the 13th test flight of its Starship rocket, the largest ever built, on Friday evening. The company plans to fly the latest version, Starship V3, from its Starbase, Texas facility. A successful launch would be the first since the company's IPO and is critical for its near-term goals of expanding its Starlink satellite network, as well as future lunar and Martian missions.