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.

“The US went from a year ago having virtually no AI regulations to now state and federal level” regulations in place, the analyst said.

Gary Black, Peter Schiff on SpaceX

Gary Black of The Future Fund LLC recently said that the recent SpaceX decline could see the commercial space flight company’s stock trade below $100. Black also said that Tesla Inc. (NASDAQ:TSLA) could fall below $300.

Economist Peter Schiff, on the other hand, commented on SpaceX’s decline, saying that the U.S. stock market is in the midst of an artificial intelligence-induced bubble.

Read Also: Ron Baron Predicts SpaceX Will Be the World's Biggest Company, Says His $25 Billion Stake Could Still Rise 30-Fold Despite IPO Stumble: 'We Consider Ourselves…'

Price Action: SpaceX shares were up 0.28% at $108.66 during overnight trading.

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