From the Port Phillip Insider (AUS) –
You know you’re in for a bad day when [fill in the blank].
In the case of Elon Musk, he must have known he was in for a bad day when the SpaceX Falcon 9 rocket blew up on the launch pad early in the morning east coast US time.
Things aren’t going well for the Silicon Valley pin-up boy. Controversy has swirled around Musk in recent months due to the takeover of SolarCity Corp [NASDAQ:SCTY] (an Elon Musk company) by Tesla Motors Inc [NASDAQ:TSLA] (another Elon Musk company).
The markets have rightly viewed the takeover as a bailout. If not for the takeover (bailout), some have argued that SolarCity wouldn’t be able to survive.
As a consequence of the rocket explosion, the Tesla stock price fell in sympathy. Tesla isn’t related to SpaceX — except that both are Elon Musk companies. It closed the day down US$11.24, at US$200.77.
Despite rising costs and rising losses, Tesla and Musk have so far been able to avoid pressure with a well-timed message on Twitter here and there…usually boasting how the company plans to increase production.
Each time, the stock has taken off as the Tesla fanboys have become euphoric at the news. But can that last? We’ll see. This isn’t the first time a SpaceX rocket has exploded. And maybe it won’t be the last.