The Department of Justice (DOJ) has filed a lawsuit against SpaceX (Space Exploration Technologies Corporation). The DOJ said that SpaceX, Elon Musk’s spacecraft and satellite communications company, has discriminated against asylees and refugees when hiring new employees.
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Per the lawsuit, SpaceX only hired U.S. citizens and lawful permanent residents from September 2018 to May 2022, claiming that it is under federal regulations known as “export control laws.” In doing so, the company failed to fairly hire or consider asylees and refugees due to their citizenship status.
It is worth highlighting that SpaceX works with such technology, software, and goods referred to as export-controlled items, which is why it must comply with export control laws and regulations. The DOJ claims that SpaceX wrongly claimed that it can only hire U.S. citizens and lawful permanent residents as it is subject to U.S. export control laws. According to the DOJ, the export control laws do not have any such hiring restrictions.
As the verdict of the lawsuit is awaited, it’s noteworthy that SpaceX has turned profitable. Additionally, the year 2022 marked a record-breaking series of successful rocket launches for the company, which is now focusing on strengthening its satellite internet service.
SpaceX Will Enhance its Network Speed
SpaceX has partnered with internet solutions and cloud-based cybersecurity service provider Cloudflare (NYSE:NET) to boost the performance of its satellite internet service, Starlink.
Through the Cloudflare partnership, Starlink is looking into ways to help expand the mini data center network. The expansion will eventually enable it to provide faster network speed.
While SpaceX will benefit from the increased number of successful rocket launches and the enhancement of network speed, Musk’s golden child, Tesla (NASDAQ:TSLA), is facing roadblocks from growing competition. To thwart competition, Musk is reducing the price of its EVs (electric vehicles), which is weighing on its margins. As Tesla’s margins are under pressure, let’s look at the Street recommendations for its shares.
Is Tesla Stock a Buy or Sell?
Given the near-term concerns over margins, analysts remain on the sidelines. Tesla stock has received 10 Buys, 13 Hold, and five Sell recommendations for a Hold consensus rating. Analysts average price target of $253.77 indicates 10.32% upside potential from current levels.
