Howmet Aerospace (HWM) shares fell nearly 8% after Elon Musk confirmed SpaceX will manufacture its own turbine blades and vanes. The decision aims to resolve supply chain bottlenecks for components required to power artificial intelligence data centers.
Musk stated that in-house production could accelerate the deployment of new power generation by up to 18 months. Howmet is currently one of the few global suppliers capable of producing these advanced industrial gas turbine components.
While the move creates market uncertainty, analysts note it highlights extreme demand and supply constraints. They suggest SpaceX’s shift does not immediately threaten Howmet’s long-term agreements with other major turbine manufacturers.