Space Exploration Technologies Corp.
(NASDAQ:SPCX) is all set to host its first-ever earnings call since going public in June on Tuesday after the market closes.
As the Elon Musk-led space flight giant has been criticized over its governance structure, Jeffries analyst Aniket Shah thinks investors need to look past the criticism for long-term success.
Governance Critics Not Looking at Data In an interview with Bloomberg on Sunday, Shah said that critics of SpaceX's governance structure, which sees Musk serve as both CEO and chair while controlling roughly 80% of the company's voting power, were "too simple-minded" and not "looking at data," he said.
Read Also: Elon Musk's SpaceX Reportedly Got Same Governance Score As Putin's Russia — One Day Before Its $75 Billion IPO Shah then said that he did not think SpaceX's recent decline had to do with governance issues, but rather the market "reevaluating general views on AI." He also pointed out that there was "no clear direct evidence that chairman-CEO separation always leads to better performance." The analyst said that "overly simplistic" views like "dual-class shareholder structure is bad," while "chairman-CEO separation is good" could result in investors losing money and making "bad investment decisions." He then said that when investing in AI companies, he sees the enterprise's interaction with the government as the biggest question.
