Key facts
- SpaceX stock price declined 5% to $124.68, below its IPO price of $135.
- The stock has fallen approximately 35% over the past 30 days.
- The Starship test flight was canceled shortly before liftoff due to two Raptor engines failing to ignite.
- CEO Elon Musk stated that the affected engines require replacement.
- Market commentator Sawyer Merritt expressed a bullish outlook, viewing the selloff as an overreaction.
- SpaceX is targeting July 20 for its next Starship test flight attempt.
SpaceX's stock price experienced a 5% drop, trading at $124.68, continuing a recent downward trend that has seen the stock hit a post-IPO low. The decline is attributed to the last-minute cancellation of the Starship test flight due to issues with two Raptor engines on the Super Heavy booster. CEO Elon Musk confirmed that these engines would need replacement, pushing the next launch attempt to July 20.
Market reactions have been mixed. Author Gary Marcus suggested on X that the situation might expose growing investor doubts about Elon Musk's execution, predicting a new record low for the stock. Conversely, investor Sawyer Merritt dismissed the selloff as an overreaction, arguing that short-term launch postponements should not overshadow the company's broader outlook. Merritt advised that investors selling shares over such delays should not have invested in the first place.
Despite the recent volatility, Merritt highlighted the revised launch target of July 20, suggesting that a successful mission could help offset recent losses. The company's stock has seen approximately 35% in losses over the past 30 days. Additionally, Binance launched a new perpetual futures product for SpaceX stock, offering a new avenue for trading the company's performance.