SpaceX shares sink below IPO price after Starship V3 abort
The stock dropped 8.51% to trade beneath its $135 debut level, though CEO Elon Musk says a replacement launch could occur this week.
SpaceX shares fell 8.51% following the abort of its upgraded Starship V3 test flight, pushing the stock below its $135 initial public offering price. The cancellation occurred on Thursday evening, just minutes after a 90-minute launch window opened, when an automatic system detected that several Raptor engines failed to ignite. The decline marks the sixth consecutive day of losses for the company, with shares hitting an intraday low of $122.12 on July 17.
CEO Elon Musk confirmed that two Raptor engines would be replaced and indicated that a subsequent launch attempt could occur as early as the current week. The incident has added to investor scrutiny surrounding the company’s valuation and execution risks, particularly as it approaches an August lock-up expiration that may contribute to further market volatility.
Financial results for the first quarter of fiscal 2026 reveal a mixed picture for the Texas-headquartered firm. SpaceX reported revenue of $4.7 billion, representing a 15.4% year-over-year increase, driven largely by its Starlink satellite communications division and growing artificial intelligence initiatives. However, the company posted an operating loss of $1.94 billion and a net loss of $4.3 billion for the quarter.
Capital expenditure patterns highlight the company’s strategic pivot, with $7.7 billion invested in AI initiatives during the quarter. This figure dwarfs the $1.33 billion allocated to Connectivity and the $1.05 billion spent on its Space business. Despite the headline losses, adjusted EBITDA reached $1.1 billion, suggesting underlying operational cash flow remains solid even as spending on future growth accelerates.
Analysts remain broadly optimistic about the long-term trajectory, with the average price target set at $231.83 and a high target of $800. Forecasts anticipate fiscal 2026 revenue of approximately $39.1 billion, rising to $72.3 billion in fiscal 2027. The company currently holds a market capitalisation of $1.62 trillion and has completed roughly 650 orbital launches, delivering over 80% of the world's mass to orbit since 2023.
