SpaceX Stock Falls Below IPO Price Amid Recent Starship Launch Scrub and Rising Competition

SpaceX's stock has fallen below its initial public offering (IPO) price of $135 per share after the company's latest Starship test flight was aborted. The move has raised concerns about the company's financial prospects and raised questions about the market's reception of its stock after a brief initial surge. SpaceX is facing significant competition in the space industry and has substantial operating losses in its AI segment.

SPCX has fallen below its $135 IPO price for the first time, sliding another 3% on July 16 to a fresh all-time low of about $131, with shares dipping toward $126.50 in after-hours trade . The decline extends a steady retreat from the stock's euphoric post-IPO highs as investors reassess the valuation Elon Musk's company commanded at listing.

The latest leg down followed a scrubbed Starship test flight, which was aborted after some engines failed to start; SpaceX said two Raptor engines would be replaced, with another attempt likely early the following week . The delayed mission was slated to deploy 20 Starlink satellites and advance the company's Starlink and Artemis programs, so the scrub pushes back visible progress on the revenue-generating side of the business .

Bearish positioning has swelled alongside the slide, with short interest reaching roughly 185 million shares, about 29% of the public float and some $25 billion in notional value, according to S3 Partners . Competition in reusable rockets from rivals and emerging programs in Japan and China adds a longer-term overhang . Analysts will watch the rescheduled Starship attempt and the approach of post-IPO lockup expirations as the next catalysts for SPCX.

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