Million-Dollar Partnership: Possible Union Between Elon Musk and Giant WEG Predicts Supply of Motors for Rockets Manufactured by SpaceX

Written by Roberta Souza

Published on 26/07/2023 at 17:24

Foto: Reprodução / Twitter

Be the first to react!

WEG Shares Rise After Positive Results and Possible Partnership with SpaceX

WEG shares have been on an upward trajectory since the release of its second-quarter results for 2023. Since then, the stocks have continued to rise, reaching a cumulative gain of 18.15% from July 18 until the close of this Monday (24). According to InfoMoney, the shares turned positive for the year, registering cumulative gains of 9.19%. This performance, along with the announcement of the partnership with SpaceX, has made WEG shares stand out as leaders in gains on the Ibovespa.

The excellent performance of WEG shares exceeded already optimistic projections. The positive highlight was revenue in the international market, which grew 25% in a year, with significant increases in North America (21%) and Europe (48%).

The good performance of shares in the international market was driven by solid demand for short-cycle industrial electro-electronic equipment, especially in North America, and by Transmission and Distribution (T&D) projects in that region, with sales of transformers for wind and solar power parks. Additionally, WEG achieved a surprising profitability due to lower input prices, a favorable mix, and productivity improvements.

ARTICLE CONTINUES BELOW

Revisions of Projections and Potential Appreciation

In response to the solid results, several firms have revised their projections for WEG upward. Bradesco BBI, despite a neutral recommendation, raised the target price by 3%, from R$ 38 to R$ 39, representing a value 6% lower than Monday’s close.

Meanwhile, JPMorgan, with an overweight recommendation, increased the target price from R$ 47 to R$ 50, reflecting a potential appreciation of 20% relative to Monday’s close. JPMorgan highlights the capacity of WEG to exceed expectations, positive prospects for the T&D market in North America, and the historic discount in valuation as factors supporting the recommendation.

Possible Partnership with SpaceX Drives Shares

According to Jovem Pan (07/24), Brazilian WEG, the world’s largest manufacturer of electric motors, was allegedly selected by billionaire Elon Musk to supply motors for SpaceX. This is because the propulsion motors of the company’s rockets consume a large amount of oxygen. Thus, SpaceX would work on creating a self-production unit for the gas to avoid purchasing the product.

SpaceX would use WEG motors in offshore oxygen production platforms, coupled with compressors used in air separation mechanisms, which are one of the fundamental components of rockets. According to Jovem Pan, the decision to choose WEG was based on the quality of the motors and the company’s agility in customizing a product line in record time.

However, a source reveals that what led to this interpretation was a note made by WEG itself on July 10, mentioning the supply of motors for the SpaceX project with Atlas Copco. Despite the alteration of the note without the names of the companies involved due to confidentiality agreements, the news of a possible partnership between WEG and SpaceX gained traction, boosting the shares.

Million-Dollar Partnership: Possible Union Between Elon Musk and Giant WEG Predicts Supply of Motors for Rockets Manufactured by SpaceX

WEG Shares Rise After Positive Results and Possible Partnership with SpaceX

Revisions of Projections and Potential Appreciation

Possible Partnership with SpaceX Drives Shares

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

China has deployed snake-shaped robots to slide along power lines, where they have already inspected over 130 kilometers of cables using cameras and sensors to detect damaged wires, worn-out parts, and overheating.

Dissatisfied with seeing laptop batteries go to waste, a man collects more than 650 units and transforms the electronic waste into a solar energy storage bank to power his house.

Ferrari sees more than $4 billion evaporate after unveiling its first 100% electric car priced at $640,000, with investors questioning if the Luce still looks like a Ferrari.

Government announces R$ 370 million for those who preserve the forest and an unprecedented initiative places traditional Amazonian communities at the center of conserving a vast area.

Accessible only by boat, an old house from 1862 is up for sale for R$ 19.4 million in the USA with a famous artist’s studio, pier, and over 10 preserved hectares.

Concrete reinforced with carrot and beetroot nanoplatelets defies the logic of traditional additives, outperforms graphene in initial tests, saves 40 kg of cement per cubic meter, and can build buildings and bridges stronger than current products.

Million-Dollar Partnership: Possible Union Between Elon Musk and Giant WEG Predicts Supply of Motors for Rockets Manufactured by SpaceX

WEG Shares Rise After Positive Results and Possible Partnership with SpaceX

Revisions of Projections and Potential Appreciation

Possible Partnership with SpaceX Drives Shares

Mother and daughter build a 70 m² house with more than 8,000 discarded glass bottles and impress with their creativity; known as the Casa de Sal, the property is located on Itamaracá Island, in Pernambuco.

Workers were opening a new road connection near the Marginal Tietê when they found, in the underground of the construction site, remnants of locomotives, wagons, and boilers from the 19th century linked to the forgotten history of Lapa.

Instead of burning or burying old tires, an American city is transforming about 2,000 of them into the street itself, paving its first sections with a quieter and more durable rubber asphalt.

China transforms desert-devastated area into the world’s largest artificial forest, planting trees for 60 years, blocking sand that reached Beijing, and creating a “green lung” of 92,000 hectares in a region once considered lost.

Greek island offers free housing for volunteers, but there’s a condition: you need to take care of rescued cats.

Engineers want to carve through Africa with a giant canal to bring water from the world’s second-largest river to a dying lake on the edge of the Sahara Desert that has already lost 90% of its water.

China has deployed snake-shaped robots to slide along power lines, where they have already inspected over 130 kilometers of cables using cameras and sensors to detect damaged wires, worn-out parts, and overheating.

Casa CazéTV transforms internet chat into a live event during the World Cup, targeting over 100,000 fans in São Paulo and Rio, and boosts a Brazilian experience company that expects to grow up to 60% with shows, big screens, activations, and Brazil’s games.

Guarulhos becomes the “Faria Lima of warehouses” with logistics square meter at R$ 37.11, more expensive than the São Paulo capital, while Shopee, Mercado Livre, Amazon, and billion-dollar funds compete for space near the largest airport in South America.

Amazon plans to invest more than R$ 1 billion to transform the Brazilian airport into a major cargo hub; the agreement with the city hall is expected to be signed by 2026 and could generate around 5,000 jobs.

Fan discovers that watching the 2026 World Cup may cost more than an international trip: variable tickets, expensive train, R$ 92 beer, and FIFA’s billion-dollar revenue turn the World Cup into a warning for the wallet.

Dissatisfied with seeing laptop batteries go to waste, a man collects more than 650 units and transforms the electronic waste into a solar energy storage bank to power his house.

Ferrari sees more than $4 billion evaporate after unveiling its first 100% electric car priced at $640,000, with investors questioning if the Luce still looks like a Ferrari.

Government announces R$ 370 million for those who preserve the forest and an unprecedented initiative places traditional Amazonian communities at the center of conserving a vast area.

Accessible only by boat, an old house from 1862 is up for sale for R$ 19.4 million in the USA with a famous artist’s studio, pier, and over 10 preserved hectares.

Concrete reinforced with carrot and beetroot nanoplatelets defies the logic of traditional additives, outperforms graphene in initial tests, saves 40 kg of cement per cubic meter, and can build buildings and bridges stronger than current products.