SpaceX shares have fallen below their IPO price after Elon Musk announced an abort of the Starship rocket launch. The stock, which peaked at $225 on June 16, is now trading at around $124, a drop of over 40% from the record. The company’s market capitalization has shrunk by $1.3 trillion from its peak of $2.9 trillion.
On Friday, July 18, Elon Musk reported that four of the 33 engines on the Starship rocket failed to ignite as planned, triggering an automatic launch abort. The next attempt is scheduled for Thursday, July 23. Investors responded immediately: the stock closed at $123 on Friday, well below the $135 IPO price from June 12.
According to analysts cited by Reuters, the success of the Starship program is crucial for the company’s long-term valuation. SpaceX accounted for more than half of the roughly 330 orbital launches worldwide in 2025, underscoring its dominant position in the space industry.
Market reaction and short interest
The sell-off has been relentless. Over the last six trading sessions, the stock has fallen from $152 to under $124, a decline of more than 18%. The current market cap stands at just over $1.6 trillion. Short interest has also surged: nearly 30% of the free float is now held in short positions, indicating bets on further declines.
Despite the pullback, some analysts still consider SpaceX overvalued. Morningstar assigns a fair value of about $780 billion, roughly half the post-IPO market cap. CFRA issued a sell rating immediately after the listing. In contrast, Morgan Stanley set a price target of $300 per share in mid-July.
Starship and the Artemis program
The Starship rocket is a cornerstone of NASA’s Artemis program, which aims to return astronauts to the Moon. It is designed to serve as a crewed landing system. Musk described the automatic abort as a positive sign that safety systems worked as intended, preventing a potential failure. The company plans a new launch attempt on July 23 after additional checks of ground support equipment.
SpaceX is also in talks with the U.S. Department of Defense to provide data center capacity for running AI models. The potential deal could be worth several billion dollars, according to Reuters. This diversification could help offset some of the current market jitters.
Źródło: WNP.PL, Fot. Findaview / Shutterstock
