Elon Musk Is Back Working With the U.S. Government. Why That Could Be Trouble for SpaceX's Stock
SpaceX's valuation is highly speculative, and negative press surrounding its CEO could weigh down the stock, just like it did Tesla last year.
Overview
A big reason investors are bullish on the long-term trajectory of Space Exploration Technologies Corp (NASDAQ:SPCX), better known as just SpaceX, is due to its visionary CEO, Elon Musk. Without Musk, I don't believe the stock would have been able to fetch a valuation anywhere near $2 trillion. But with his ability to grow businesses and sky-high expectations for future growth, growth investors are drawn to his companies.
But there have also been times when Musk's role as CEO hasn't been all that great for shareholders. A year ago, when he was working closely with the government, Tesla's stock struggled, largely due to negative press surrounding Musk and questions about his leadership.
Details
Now, Musk is back to working with the U.S. government. Here's why that could be a concerning development for SpaceX investors.
Source
Originally published at www.fool.com.