Elon Musk’s Tweet Scared Howmet Investors. It Shouldn’t Have.

On August 30th, Elon Musk tweeted that SpaceX would begin manufacturing its own gas turbine blades and vanes at a foundry in Texas. The stock of Howmet Aerospace (HWM) dropped by around 8% in a single trading session in response to this news. These blades are crucial components found in the hottest part of a turbine, and they are a major hurdle slowing down the construction of new power plants.

Musk claimed that producing them in-house could get turbines online up to 18 months sooner, benefiting SpaceX's AI data centers. However, this reaction may have been an overreaction. The reason SpaceX needs to build its own foundry is that only four companies worldwide produce these blades at scale, controlling about 70-80% of the market.

Analysts like Bernstein saw the selloff as a buying opportunity, while others like Citi and Jefferies pushed back. SpaceX is still around four years away from meaningful output, according to Jefferies. However, Howmet's own financial performance remains robust, with a 24% revenue increase and 46% earnings growth in the last quarter.

Despite the premium on the stock, the EPS outlook is solid, with analysts expecting steady growth. Howmet Aerospace delivered strong financial results in the second quarter, and the company raised its full-year 2026 revenue and EPS guidance. Experts generally view Howmet Aerospace as a strong buy, suggesting significant upside potential.