SpaceX (NASDAQ: SPCX) shares fell sharply on Friday, putting the aerospace company on track to lose more than $1 trillion in market value from its June peak.
The decline followed the last-minute cancellation of SpaceX’s latest Starship test flight. The aborted launch raised fresh concerns about the company’s most important rocket programme and added further pressure to its recently listed shares.
SpaceX Market Value Falls From June Peak
SpaceX shares dropped as much as 4.6% after the US market opened, reaching approximately $125.13 per share.
As a result, the company’s total market capitalisation declined to around $1.65 trillion. That represents a significant fall from the $2.64 trillion valuation recorded at the close of trading on June 16.
The latest decline also extended a difficult period for the stock. SpaceX shares slipped approximately 4% during pre-market trading and reached new lows since the company’s initial public offering.
Earlier in the week, the stock had already fallen below its IPO price.
Starship Flight 13 Aborted Before Liftoff
The sell-off came after SpaceX cancelled the 13th test flight of its Starship rocket on Thursday.
The launch was stopped only minutes before the spacecraft was scheduled to lift off from the company’s launch site in Texas.
A livestream showed Starship’s engines beginning to fire before an automatic safety system triggered the abort. The exact cause was not immediately clear during the broadcast.
However, SpaceX CEO Elon Musk later explained that several spacecraft engines had failed to start correctly. According to Musk, the company hopes to make another launch attempt within the next few days.
Starship Remains Critical to SpaceX’s Future
The cancelled flight could represent an important setback because Starship is SpaceX’s largest and most powerful launch vehicle.
The rocket is central to the company’s plans for missions into Earth orbit. It is also expected to play a major role in future missions to the Moon and, eventually, Mars.
In addition, SpaceX plans to use Starship to deploy its next generation of Starlink satellites. Therefore, further delays could affect several areas of the company’s long-term growth strategy.
Starship has experienced recurring engine-related problems during its development. Its 12th test flight in May also revealed engine issues and reportedly attracted attention from the Federal Aviation Administration.
Successful Test Could Restore Investor Confidence
Wolfe Research analyst Myles Walton said a successful Flight 13 attempt next week could improve investor confidence before SpaceX reports its first earnings results in early August.
A successful launch could also allow the company to move closer to Flight 14, an important orbital test expected to support the deployment of next-generation Starlink satellites.
Progress with the Starship programme may become even more important as additional SpaceX shares become available for public trading.
Around 1.2 billion additional shares are expected to become freely tradable in August. This potential increase in supply could place further pressure on the stock, particularly if investor sentiment remains weak.
Walton suggested that completing a successful Flight 13 test would provide the company with a more positive development before those additional shares enter the market.
SpaceX Shares Face a Critical Period
SpaceX is now entering an important period following its high-profile June IPO.
Investors will closely monitor the next Starship launch attempt, the company’s first earnings report and the release of additional publicly tradable shares.
A successful launch could help stabilise confidence in SpaceX’s technology and long-term ambitions. However, another engine failure or further delay could increase concerns about Starship’s development and place additional pressure on the company’s share price.
