TLDR
- SpaceX stock dropped 6.4% to $130.66, falling below its $135 IPO price on Thursday.
- CEO Elon Musk said the Starship upper stage catch will likely happen “in a few months,” not imminently.
- The 14th Starship test was expected to feature the upper stage catch using mechanical tower arms.
- William Blair analyst Louie DiPalma rates the stock Outperform, saying a few months delay is not consequential.
- SpaceX aims to launch Starmind AI computing satellites as soon as 2027, which likely requires Starship.
SpaceX (SPCX) stock dropped 6.4% to $130.66 in midday Thursday trading, slipping below its $135 IPO price after CEO Elon Musk pushed back the timeline for catching the Starship upper stage with the launch tower.
Space Exploration Technologies Corp., SPCX
Musk posted on X that the company would “probably catch the ship with the tower in a few months,” walking back expectations that the milestone would come on the next test flight.
Looks like we will probably catch the ship with the tower in a few months. If there had been a tower out to sea where we practiced landing the ship, it would have been caught.
First reflight of the ship will be either end of this year or early next. That will be a fork in the… https://t.co/O5g9pqrzyo
— Elon Musk (@elonmusk) August 20, 2026
The 14th Starship test, expected later this month, was supposed to feature that upper stage catch. SpaceX had already pulled off the same trick with the Super Heavy booster back in October 2024 during Flight 5, using the giant mechanical “Mechazilla” arms at its Starbase, Texas facility.
The booster catch was repeated on later flights, including Flight 7, building confidence in the system. Catching the upper stage is a tougher challenge, given it returns from much higher speeds and heat loads after near-orbital flight.
Musk also noted that the first reflight of a Starship vehicle is expected by end of 2026 or early 2027.
The S&P 500 was down 0.5% on the day, so SpaceX’s drop significantly outpaced the broader market.
What Analysts Are Saying
William Blair analyst Louie DiPalma pushed back on the sell-off. In a Thursday note, he said the delay is “not that consequential” because SpaceX is “likely a full decade ahead of peers” on rocket reusability.
DiPalma rates the stock Outperform with no specific price target. At William Blair, that essentially means the analyst expects the stock to beat the market.
He acknowledged the timing shift but pointed to the broader progress: Starship is still moving toward full reusability, which would allow both rocket stages to return to the launch pad, be refueled, and fly again quickly.
That rapid reusability is the core of SpaceX’s cost reduction pitch, with Musk claiming it could cut the price of reaching orbit by a factor of 100 or more.
What Is at Stake for SpaceX
SpaceX stock has been volatile since its record-setting June IPO. Thursday’s drop is one of the sharper single-day moves since the listing.
Starship progress matters beyond just the test campaign. SpaceX is targeting 2027 for the launch of its Starmind AI computing satellites, and Starship is likely needed to put those into orbit.
SpaceX believes data centers in space, powered by those satellites, will give it a meaningful AI advantage over competitors limited to ground-based infrastructure.
The 13th Starship test in July was described as a success. SpaceX said mission data would determine whether a catch attempt would follow on the next flight, but Musk’s latest post signals that timeline has shifted.
Stop guessing and start investing with confidence. KnockoutStocks gives you the AI insights, market intelligence, and stock research you need to spot opportunities, cut through the noise, and make smarter investment decisions — all in one powerful platform.
Sign up today and get 50% OFF full access to our premium stock picks.
Simply use coupon code SPECIAL50 at checkout to claim your exclusive discount.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
