TLDR
- SPCX shares fell 4.8% on Friday, trading below $125 — now below their IPO price compared to last month.
- SpaceX has canceled the spacecraft’s 13th test flight after two Raptor engines failed to ignite
- CEO Elon Musk said the engines will be replaced, and the next launch attempt is expected to take place early next week
- The stock has lost more than $1 trillion in market value since reaching its June peak of $2.64 trillion
- Analysts say the success of Flight 13 is key ahead of SpaceX’s first earnings call in early August
SpaceX stock fell as much as 4.8% on Friday, hitting a new post-IPO low of less than $125 per share. That puts it about $10 below its IPO price from last month, making it an officially defunct IPO.
Space Exploration Technologies Corporation, SPCX
The sales came in the wake of the cancellation of the Starship’s 13th test flight, which was aborted just minutes before takeoff from Texas on Thursday evening.
Two Raptor engines in the Super Heavy booster failed to ignite, resulting in a spontaneous abort. CEO Elon Musk confirmed the problem on social media, saying the engines would be removed and replaced.
“To be confident of a good flight, two Raptors will be removed and replaced,” Musk said. “The most likely launch date is early next week.”
Aborted launch is SpaceX The first major test since its IPO in June. The company’s market capitalization has now fallen from a peak of $2.64 trillion on June 16 to about $1.65 trillion at Friday’s open — a loss of nearly $1 trillion.
It should be noted that the Starship’s 12th test flight in May also had engine problems and led to an investigation by the Federal Aviation Administration. Engine reliability has been a recurring topic.
Why spacecraft matter
The spacecraft is central to many… SpaceX Biggest goals. It is the only rocket currently capable of carrying Musk’s next V2 Mobile and V3 Starlink satellites into orbit.
It is also NASA’s vehicle designated to return astronauts to the Moon under the Artemis Program Human Landing System contract.
What analysts are watching
A clean 13th flight will boost confidence ahead of SpaceX’s first earnings announcement, expected in early August, said Miles Walton, an analyst at Wolfe Research.
Walton also cited supply concerns. About 1.2 billion additional shares are expected to become available for free trading in August.
“Getting a clean run for Flight 13 will be important to handle this potential influx of supplies, especially given the continued decline in inventory in recent weeks,” Walton wrote.
The stock has fallen since hitting its post-IPO high, and fell below its IPO price earlier this week before Friday’s drop extended those losses.
Despite the sell-off, some analysts say the reaction is overblown. Delaying a few days to replace engines is a routine part of rocket development, and is arguably safer than trying to launch with engines that haven’t ignited.
The stock was trading around $124.80 as of midday Friday, with a 52-week range of $122.14 to $225.64.
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