The stocks of Maxeon Solar and Virgin Galactic are crashing to more all-time lows, signaling that they may soon be the latest in a decades-long string of failures by state and ABQ economic developers to land the big fish that could improve the private-sector economy.

Singapore-based Maxeon received accolades and promises of millions in incentives from leading politicos when they announced in 2023 their plans to build a $1 billion solar manufacturing facility near the ABQ Sunport. Since then there has been nothing but delays and bad news.

The now seemingly inevitable failure is nearing as Maxeon undergoes a radical restructuring and its market value plummets to a mere $56 million. The hope of an infusion of desperately needed federal grant money is fading while fossil fuels carry the day with the Trump administration whose tariffs are adding to the panic surrounding the company.

As for Virgin, the main tenant at the state's Spaceport America near T or C, they've been promising to send tourists up in space from the site for two decades. But billionaire founder Richard Branson months ago said he would no longer tap his own bank account to keep that dream alive. The company is on its own and this week Virgin stock also fell to record lows with a market value now reduced to $122 million from ten times that not long ago.

Virgin says they continue their work on a new space plane for future launches. But one wonders if that is more like a script for a Star Trek movie than a fact-based documentary.

POVERTY SPIN

The state's inability to build out a robust private sector is no more evident than in the new spin on the state's poverty level.

The Governor now says when federal grants and other public assistance like the state's many tax credits are included in household income, our poverty rae is not among the highest in the nation but sliced by one third.

It is gratifying that the state has come to the aid of those most in need and improved their basic security but that is not true economic success. It's an achievement of the ample welfare state that New Mexico has increasingly become. 

Bringing deprived citizens above the poverty line is essential but improving the quality of life in a more meaningful way requires robust economic development like we've seen in the states surrounding ours. 

That would be something to celebrate. 

Public support for the welfare state with billions in Medicaid dollars, tax credits, tuition breaks, free child care etc. is necessary to keep the motor running. But what looks like the impending doom of Maxeon and Virgin piled atop so many other failures only underscores that we can keep the state's motor running but the car itself is not road worthy.   

This is the Home of New Mexico Politics.