Key Takeaways
- SpaceX stock fall for a second straight session, nearing their IPO price.
- FAA clears Starship for another test flight pending final safety requirements.
- Growing competition and investor caution weigh on SpaceX stock.
SpaceX shares extend their decline for a second straight session on Tuesday, slipping near the company’s $135 initial public offering price despite a recent Nasdaq-100 inclusion and new regulatory clearance for its Starship program.
SpaceX shares continue to retreat after the company’s high-profile public market debut last month. The stock closes at $139.14, falling below its first trading price of $150 on June 12 and giving back part of the gains made following one of the year’s biggest IPOs. This SpaceX stock fall follows optimism around SpaceX’s Terafab chip factory, announced weeks earlier as part of its AI infrastructure push.
The decline comes only days after SpaceX joined the Nasdaq-100 index. The addition prompts purchases from index-tracking funds that must include the company in their portfolios, but the buying has not prevented the recent sell-off.
FAA clears next Starship flight
The Federal Aviation Administration completes its review of the Starship booster issue linked to a May test flight. The agency says SpaceX may proceed with Starship Flight 13 once all remaining safety and licensing requirements are met.
The next Starship test flight is scheduled for Thursday, July 16, at 6:45 p.m. ET. If the launch proceeds as planned, it will mark 55 days between Flights 12 and 13, a much faster turnaround than the previous testing cycle.
Raymond James analyst Brian Gesuale says the faster launch pace reflects stronger operational performance. He maintains a “strong buy” rating on the stock and predicts significant upside over the next year, citing the company’s increasing launch cadence, even amid the broader SpaceX stock fall.
Competition, investor sentiment weigh on shares
Despite the regulatory progress, investors continue selling the stock. Market observers point to growing competition in the commercial space industry as one factor behind the SpaceX stock fall.
China Aerospace Science and Technology Corporation announces a successful test of its reusable Long March 10B rocket over the weekend. The mission includes a controlled landing at sea using a floating recovery platform, marking progress in reusable launch technology.
SpaceX remains one of the market’s most closely watched newly listed companies. Investors continue to view the company as a major player in commercial space launches and artificial intelligence infrastructure, and analysts say its successful IPO could encourage other privately held AI companies to consider entering public markets.
Analysts remain divided on the stock’s near-term outlook. While some expect SpaceX’s expanding launch schedule and regulatory progress to support future growth, others say increased competition and post-IPO profit-taking are contributing to the current SpaceX stock fall.
