Elon Musk Says SoftBank Is Defaulting on Turbine Orders
Musk flags SoftBank turbine default
On November 6, Elon Musk stated on X that SoftBank is defaulting on turbine orders, hitting markets just as GE Vernova faces critical pricing tests for its gas equipment backlog, tikr.com reported.
SoftBank and GE Vernova shares decline amid market shifts
SoftBank stock dropped sharply following aggressive artificial intelligence bets and a political shift after Democrats won both chambers of Congress. SoftBank shares fell 11 percent in early trading on a Friday following a 14 percent drop the previous day, bringing its one-month decline to 45 percent, tikr.com reported.
Investors are now paying more to insure SoftBank debt than at any point in the past four years, Reuters reported. GE Vernova shares fell alongside the broader market sell-off, touching 33 times forward earnings—its lowest valuation multiple in a year.
SoftBank is defaulting on their turbine orders
Ohio plant reserves gas turbines
SoftBank announced in May that it had reserved turbines from manufacturers including GE Vernova for a 9.2-gigawatt gas plant in Ohio. The SB Energy unit is building the facility to power an artificial intelligence data center campus, tikr.com reported.
Musk did not specify which manufacturer’s orders are specifically at risk. Neither SoftBank nor any turbine maker confirmed a canceled order by Friday, and Musk did not state the exact order volume or supplier involved.
Scarcity protects the equipment backlog
Turbines remain scarce enough that GE Vernova will likely find a replacement buyer for any forfeited reservation slot, tikr.com reported. Even a full cancellation of the Ohio facility’s equipment would account for well under a tenth of the 122 gigawatts of gas equipment GE Vernova had under contract at the end of September.
Contract deposits and slot reservations are nonrefundable, and many developers are actively searching for available equipment. Cipher Digital CEO Tyler Page stated during a November 2 third-quarter call that securing such machinery is exceptionally difficult because there are not enough turbines and reciprocating engines in the world, tikr.com reported.
Rising prices drive revenue targets
GE Vernova’s financial forecasts rely heavily on escalating equipment prices. The CEO said on an October 28 call that 2026 gas turbine orders carry prices roughly 50 percent higher per kilowatt than 2025 orders, tikr.com reported. Analysts expect revenue to expand from $38.1 billion in 2025 to $61.3 billion by 2028. Operating margins climbed from -5.9 percent in 2022 to 5.6 percent in 2025.
Fourth quarter earnings reveal demand
GE Vernova trades at 33 times forward earnings, down from a one-year average multiple of 54, tikr.com reported. The upcoming fourth-quarter report will show whether gas pricing holds, tikr.com reported.