The test launch of SpaceX's Starship rocket was aborted at the last minute, adding pressure to the aerospace giant's already volatile post-IPO share price.
On Thursday, SpaceX had planned to open a 90-minute launch window at its Texas site at 5:45 PM ET, but a failure to ignite the engines forced a mission abort. Founder Elon Musk subsequently posted on X, stating, "Some engines did not start, triggering an automatic abort. We are currently unloading propellant and hope to try again in a few days." He later added that two Raptor engines would be removed and replaced, with a new launch attempt targeted for early next week.
Following this news, SpaceX shares fell over 3% in after-hours trading on Thursday and dropped a further 3.5% in pre-market trading on Friday, accumulating a two-day decline of more than 6%. This comes just weeks after the company completed its record-setting $85.7 billion IPO in June, pricing shares at $135.
Market Highly Sensitive to Test Progress Following Historic IPO
SpaceX's IPO in June set a historical record, becoming the largest initial public offering ever. Since listing, its share price has experienced significant volatility with mixed gains and losses.
Consequently, investor focus on each rocket test is now far more intense than before. This test flight of the Starship V3 is the first Starship test since the IPO, and the market views it as a crucial window to assess the company's technical progress and execution capabilities. The news of the abort has directly heightened market caution.
Test Failure Not the First, FAA Investigation Recently Concluded
This abort is not the first recent setback for SpaceX. In May, a Starship test also ended in failure—the upper stage vehicle veered towards the Indian Ocean, and the Super Heavy booster failed to achieve a controlled landing in the Gulf of Mexico due to 5 of its 33 Raptor engines failing to re-ignite.
That incident prompted an investigation by the U.S. Federal Aviation Administration (FAA). The FAA announced the conclusion of its investigation this past Monday, formally approving SpaceX to proceed with its test program. This latest Starship V3 launch attempt was initiated promptly after receiving regulatory clearance.
Musk: Another Attempt in Days, Technical Issues Deemed Manageable
Musk's characterization of the abort event on social media was relatively optimistic, attributing it to identifiable, repairable hardware issues—two Raptor engines will be removed and replaced, with another launch attempt scheduled for early next week.
This statement has provided some market expectation anchoring, but given the post-IPO share price was already in a state of high volatility, investor sentiment remains cautious in the short term. The successful completion of the subsequent launch will become a key juncture for the market to reassess SpaceX's technical roadmap and valuation logic.
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