The stock market has gotten off to a great start in the first half of 2024. The S&P 500 has gained 14.3% while the Nasdaq Composite is up 17.6% so far this year.

One stock that hasn't done so well is Boeing (BA -0.27%). Shares of Boeing have cratered over 33%, as the aerospace company has been at the center of numerous controversies surrounding safety protocols in its jetliners as well as a management shakeup.

In the midst of all the hoopla, outspoken entrepreneur Elon Musk may have dealt yet another blow to Boeing. Let's dive into how Musk is disrupting the aerospace industry, and determine if Boeing is turning into a falling knife.

Boeing's latest problem is downright scary

Boeing is an enormous and complex company. You're probably most familiar with Boeing due to its enormous commercial airliner business. The company competes fiercely with Airbus, and its 737 commercial jet is one of the best-selling planes in the world.

Outside of commercial planes, Boeing also has a big presence in the defense industry. The company manufactures spacecraft, satellites, missile systems, and more.

Earlier this month, NASA worked with Boeing to launch one of its Starliner spacecrafts into orbit. Shortly after the launch, engineers discovered that the Starliner capsule had a series of helium leaks.

This news would be bad enough considering Starliner's launch efforts have been deterred for many years due to challenges with fuel and oxygen valves. However, to make matters worse for Boeing, the current Starliner mission was crewed by two astronauts who are now stuck in outer space on the International Space Station (ISS).

According to various news outlets, Starliner only has about 45 days worth of fuel, which adds to the enormous pressure to bring these astronauts safely back to Earth.

Engineers working at a space station.

Image source: Getty Images.

Elon to the rescue?

Elon Musk is one of the most famous business leaders in the world. While he is best known for his role as the CEO of Tesla, Musk has a number of other businesses that he is in charge of.

One of his projects outside of Tesla is SpaceX. Like Boeing, SpaceX also manufactures satellites and commercial spacecraft, and works closely with the federal government.

Back in May, Musk took a jab at Boeing on social media platform X (formerly known as Twitter) -- which he also owns.

Musk is hinting that not only are SpaceX's vehicles technologically superior to those of Boeing, but the company is also able to build its aircraft at a more attractive price point.

To add insult to injury, SpaceX also operates an internet-satellite business called Starlink. While Boeing had plans to compete with Starlink a couple of years ago, the company reportedly scrapped this effort back in November.

The bottom line

If I were a government contractor, I wouldn't write off Boeing just yet. The company works closely with NASA and U.S. defense agencies, so I don't necessarily see the company losing any public-sector business anytime soon.

With that said, the latest developments surrounding Starliner, as well as the company's failed efforts to compete with Starlink, don't exactly inspire confidence. Over time, SpaceX could end up winning more government business at the expense of Boeing. This dynamic isn't out of the realm of possibility considering SpaceX has proven that it can manufacture spacecraft more quickly and with less capital granted by the government.

I think investing in Boeing stock is far too risky right now. I don't see the falling share price as an opportunity to buy the dip. Investors may want to sit on the sidelines right now and monitor Boeing's efforts as the company battles some reputational damages.