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Howmet, GE Vernova Shares Fall After Musk Reveals In-House Turbine Blade Production
Shares of key industrial manufacturers, including Howmet Aerospace and Siemens Energy, fell in premarket trading after Elon Musk confirmed plans for SpaceX to produce its own natural gas turbine components. The move is part of a broader strategy to support a massive expansion in solar power generation by Tesla and SpaceX.
Market Reaction
The announcement triggered an immediate negative reaction from investors in companies that are established suppliers in the power generation market. The stock declines on Monday reflected concern over potential disruption from a major new entrant into the specialized manufacturing space.
- Howmet Aerospace (NYSE:HWM): Dropped 7%
- GE Vernova (NYSE:GEV): Declined 3%
- Siemens Energy (ETR:ENR): Fell 4.4% in Frankfurt trading
Musk's Power Play
In a post on the social media platform X, Musk confirmed an earlier report from *The Information* that SpaceX and Tesla are building 100 gigawatts per year of solar production capacity. He stated that natural gas power will still be needed to supplement solar generation for several years.
AdTo address this, Musk said SpaceX will begin casting its own turbine blades and vanes, a critical component in natural gas turbines. He described the in-house production as a "profound game-changer," claiming it could "accelerate nat gas turbines coming online by up to 18 months" by overcoming existing supply chain bottlenecks.
Industry Implications
While the market sell-off suggests fear of new competition, some industry analysts see the situation differently. Omid Vaziri, an analyst at Bloomberg Intelligence, said Musk's announcement "validates turbine scarcity rather than threatens Siemens Energy."
Vaziri noted that incumbent manufacturers like Siemens Energy are already expanding their own casting capacity to ease supply constraints. He suggested Musk's entry into the market highlights an existing bottleneck, which could ultimately support long-term, higher-margin aftermarket demand for established players as the global fleet of turbines grows.
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