Shares of several industrial and energy equipment makers fell following a post on X by Elon Musk that confirmed a large-scale solar manufacturing push and efforts to accelerate natural gas turbine deployment.
In premarket trading on Monday, Howmet Aerospace (NYSE:HWM) slid about 7%. GE Vernova (NYSE:GEV) decreased roughly 3%, and Siemens Energy (ETR:ENR) traded down approximately 4.4% in Frankfurt.
Musk wrote on X that SpaceX and Tesla are building 100 gigawatts per year of solar production capacity. He added that natural gas will still be required to supplement and support solar power for several years.
In a direct comment about the turbine supply chain, Musk said: "The limiting factor for nat gas turbine production is casting the blades & vanes. By doing in-house casting at SpaceX, we can accelerate nat gas turbines coming online by up to 18 months, which is a profound game-changer." The comment was made in response to an earlier report by The Information that noted SpaceX is preparing groundwork for a turbine-blade factory to help address a data center power shortage.
Market context and analyst view
Bloomberg Intelligence analyst Omid Vaziri interpreted Musk's announcement as validation of existing turbine scarcity rather than a direct threat to Siemens Energy's business. Vaziri noted that "Siemens Energy is already expanding ceramic-core and casting capacity internally, helping ease the bottleneck on near-term deliveries, while supporting higher-margin aftermarket demand long term well beyond 2030 as the installed fleet grows."
The immediate market reaction reflected investor reassessment of near-term demand and supply dynamics for turbine components and the potential implications for firms supplying turbine blades and related casting services.
Summary of key points
- Elon Musk confirmed on X that SpaceX and Tesla plan to build 100 gigawatts per year of solar production capacity.
- Musk said natural gas will continue to be needed to support solar for several years and that in-house casting of turbine blades at SpaceX could speed turbine deployment by up to 18 months.
- Shares of Howmet Aerospace, GE Vernova and Siemens Energy fell in premarket and early trading after the announcement.
Risks and uncertainties
- Timing risk - The claim that in-house casting could accelerate turbine deployments by up to 18 months introduces uncertainty around established production timelines for turbine makers and suppliers.
- Supply-chain implications - If SpaceX moves into blade-and-vane casting, the near-term dynamics for casting capacity and deliveries could shift, affecting sales and margins in the turbine supply chain.
- Market reaction risk - Short-term equity volatility in related sectors, including aerospace, industrial casting, and energy equipment, may persist as investors process the announcement.
The information above is drawn from public comments and market moves reported in premarket and early trading sessions. Reviewed by an editor.