AST SpaceMobile Rallies As Trump–Musk Clash Spurs Bets On Rival Contract Wins; Retail’s Extremely Bullish
Synopsis
The conflict began with Musk’s criticism of a $1.6 trillion U.S. spending bill and Trump’s threat to revoke contracts, raising concerns about future government dealings with SpaceX and Tesla.
AST SpaceMobile Inc.'s (ASTS) stock hit a 3- month high on Thursday as investors responded to the growing conflicts between President Donald Trump and Tesla and SpaceX CEO Elon Musk.
The stock closed up 7.5% at $30.85 on Thursday and gained 1.8% in the after-hours.
The gains reflected investors' belief that the recent disagreement between Trump and Musk may open new government contract opportunities for competitors like AST SpaceMobile.
The company stands to gain from changes in governmental space and communications policies through its satellite broadband services and alliances with telecommunications industry leaders.
Musk's criticism of a proposed $1.6 trillion U.S. spending bill, which he claimed would limit electric vehicle incentives and help fossil fuels, worsened the feud between him and Trump.
Trump threatened to terminate federal contracts held by Musk's companies, SpaceX and Tesla, as a response.
The dispute escalated when both sides attacked each other personally via social media platforms.
Briefly, Musk said SpaceX would discontinue the Dragon spacecraft used for NASA's International Space Station missions, though he later retracted the decision.
Government policy remained unaffected by the dispute, yet traders saw this situation as a forecast for future political obstacles that SpaceX and other Musk companies might encounter in federal contracts or regulatory assessments, especially with Trump's potential return to office.
On Stocktwits, retail sentiment was ‘extremely bullish’ amid ‘extremely high’ message volume.
AST SpaceMobile is also one of the top five trending stocks on the platform.
One user said that Musk's conflict with the government could open up more contract opportunities for ASTS.
Meanwhile, another user expressed optimism about the stock's momentum, saying it was time to set new highs beyond the $30 level.
The stock has risen 42.6% so far in 2025.
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