SpaceX shares slip below IPO price after aborted Starship launch

SpaceX's shares closed at $131.11 on Thursday, marking the first time the stock finished below its $135 IPO price. The decline continued on Friday, with the price dropping nearly 5% and trading under $125 in early trading on Monday. The fall follows the company’s decision to abort the scheduled Starship launch from its Starbase facility in South Texas after some engines failed to start, CEO Elon Musk said in a post on X, adding that a new launch attempt is planned for early next week.

The company raised more than $85 billion in its June 12 public offering, the largest debut in history. Since the peak on June 16, the market value has fallen by about $1 trillion, including roughly $320 billion lost since the IPO day. The Starship vehicle, central to SpaceX’s future plans for deploying next-generation Starlink satellites and NASA’s Artemis lunar missions, was slated to return to flight after a May mishap with an upgraded V3 version.

Analysts note that upcoming lockup expirations could add pressure on the stock. Approximately 911.5 million shares held by employees and early investors will become eligible for sale after the company’s first quarterly report, expected in August, with further restrictions set to lift in the following months. Investors who purchased shares at the IPO price are now facing losses.