SpaceX, under the leadership of Tesla’s (TSLA) CEO Elon Musk, has ambitious plans for its Starship rocket. At an investor event on Friday, SpaceX President Gwynne Shotwell said that the company could launch as many as 400 Starships over the next four years.
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The rocket, which Musk envisions for future Mars missions, is still under development, with engineers facing several technical challenges before it can become completely operational. Importantly, SpaceX has conducted five Starship test launches since April 2023, with another test flight expected early next week.
Investors should note that SpaceX’s goal of 100 launches a year would require a major boost in production and refurbishment capacities, along with some relaxation of regulatory policies.
SpaceX’s Launch Plans May Spark Regulatory Reforms
The company’s aggressive launch plan is expected to put pressure on the Federal Aviation Administration (FAA), which oversees launch licensing. Previously, SpaceX has criticized the FAA’s regulatory process, urging for quicker procedures to speed up launch approvals.
Shotwell expressed hope that the incoming Donald Trump’s administration and the Musk-led government efficiency commission will push for regulatory reforms across industries. With Musk’s involvement in shaping space policies, SpaceX may benefit from more favorable regulations and faster approval processes.
Is Tesla a Buy, Sell, or Hold?
When it comes to Musk’s electric vehicle (EV) company Tesla, analysts remain sidelined about TSLA stock, with a Hold consensus rating based on 11 Buys, 16 Holds, and eight Sells. At $207.83, the average Tesla price target implies a 35.2% downside potential. Shares of the company have gained about 83.32% in the past six months.
