SpaceX's stock price has fallen below the $135 IPO price, and the market is beginning to focus on the pace of its commercialization progress.

Source: Jinshi Data

SpaceX's giant Starship rocket was scheduled to perform its 13th flight test on Thursday, but just about 1 second before liftoff, the launch was aborted automatically due to some engines failing to ignite, and the rocket ultimately did not depart the launch pad.

This mission was originally planned to allow Starship to complete a test flight that circles the Earth about halfway, approaching the edge of space. SpaceX stated that before retrying the launch, the company needs to investigate the cause of the engine anomalies.

Starship is approximately 407 feet (about 124 meters) tall and is equipped with 33 Raptor engines, making it the tallest and most powerful rocket in the world. The project is also a crucial foundation for SpaceX to expand its Starlink satellite internet business and conduct NASA's lunar mission.

Engines ignited then shut down, SpaceX plans to replace two Raptor engines

At 6:45 PM Eastern Time, the launch window opened at SpaceX's Starbase in southern Texas. Weather conditions and other preparations were all in accordance with the plan before the launch.

Live footage showed that with 3 seconds to go before the planned liftoff, the Starship engines began to ignite, but then some already ignited engines suddenly shut down, and the rocket remained on the launch pad. The launch team immediately initiated the fuel depletion procedure.

SpaceX staff indicated that the booster "shut down the engine just as it started igniting."

Elon Musk later stated on the X platform: "Some engines did not start, triggering the automatic launch abort procedure."

He subsequently added that to ensure a successful next flight, the company will disassemble and replace two Raptor engines, with the most likely launch time being early next week.

If this test is successful, it will mark the first flight test of the upgraded Starship V3. This version was launched by SpaceX after completing its IPO last year.

In the previous round of V3 testing conducted in May this year, although the rocket successfully lifted off, multiple engines at the base of the first-stage booster failed to reignite, leading to the inability to complete a soft landing, ultimately causing it to fall into the Gulf of Mexico.

The Federal Aviation Administration (FAA) had previously required SpaceX to investigate relevant anomalies and approved the Starship to resume flights on Monday.

The FAA stated that the investigation report identified two likely root causes for the loss of the Super Heavy booster: components of the propulsion system were affected by thermal effects during ascent, and the engine alarm system was incorrectly set. SpaceX subsequently identified four corrective measures, including updates to the vehicle's hardware and software.

Starship tasked with NASA's lunar mission, test progress under close watch

The 13th test flight was originally planned to last about an hour and carry 20 of SpaceX's latest generation Starlink satellites.

According to the original plan, these satellites would be deployed during the flight and attempt to establish communication with the Starlink satellites that had already entered orbit. Additionally, SpaceX planned to capture images of the Starship's heat shield for subsequent technology validation.

These satellites are expected to deploy solar panels and antennas after release, connecting to a broader Starlink network. SpaceX stated that the satellites would re-enter the atmosphere and "self-destruct" approximately 20 minutes after deployment.

This mission did not include the recovery of the first-stage booster or the Starship spacecraft, both of which will ultimately fall into the ocean.

The progress of Starship testing is also related to NASA's future crewed lunar mission plans. The United States National Aeronautics and Space Administration has chosen SpaceX and Jeff Bezos's Blue Origin to develop lunar landers.

Both companies need to enable their respective lunar landers to be flight-capable before next year so that astronauts for the Artemis III mission can practice docking in Earth's orbit. Subsequently, no earlier than the Artemis IV mission in 2028, one of the landers will be used to send two astronauts to the lunar south pole region.

Stock price continues to fall post-IPO, SpaceX's market value shrinks

As the Starship launch was postponed, SpaceX's stock price continued to be under pressure and fell below the IPO price for the first time.

SpaceX completed its IPO pricing at $135 per share on June 11 and began trading on NASDAQ on June 12. On the first day of trading, the stock price increased by 19%, reaching a high of $193.

However, the stock price has continued to decline since then. By Thursday's close, SpaceX's stock price had fallen over 3%, reporting at $131.11, with after-hours trading dipping to $124.

SpaceX raised $85.7 billion through the IPO, becoming one of the largest IPOs in history. However, shortly after going public, the company issued an additional $25 billion in debt.

Reports suggest that paper short positions against SpaceX are nearing $4 billion. Some retail investors bought shares at around $150 on the first day of trading, and as of now, the value of those investments has shrunk by over 11%.

SpaceX's market value has decreased by over $1.2 trillion since the peak on June 16. Based on the initial public offering price, the company's market value has shrunk by about $250 billion.

Musk's wealth has also been affected by stock price fluctuations. After the IPO was completed, his net worth briefly rose from around $700 billion to a peak of approximately $1.32 trillion, but the Bloomberg Billionaires Index indicates that it is currently about $850 billion.

Musk remains optimistic about the company's long-term development. Shortly after the IPO completion, he stated: "SpaceX could achieve about $1 trillion in revenue by 2030."

Despite the recent weak performance of the stock price, Wall Street analysts overall still view SpaceX's long-term prospects positively. However, the company's first post-IPO earnings report, set to be released in the coming weeks, along with the expiration of the stock lock-up period for some shareholders, may continue to put pressure on the stock price.

Historically, it is not uncommon for large IPOs to drop below the offering price shortly after. Meta Platforms (META.O) traded below its offering price for over a year after going public in 2012, and Uber (UBER.N) also traded below its offering price for several months after its IPO in 2019, but both companies subsequently achieved long-term increases.