SpaceX's Starship rocket experienced an automated abort during engine ignition for its 13th test flight from Texas. This was its first launch attempt since going public in June, and the abort was triggered because some of the 33 engines did not start. Elon Musk confirmed on X that between two and four Raptor engines failed to ignite, and two will be replaced, with another launch attempt targeted for early next week, possibly July 20. Shana Diez, Director of Starship engineering, noted this was the first time a fully stacked Starship had ignited its engines and then aborted.
The immediate aftermath saw SpaceX's shares fall by roughly 6% to $124.30, below its $135 IPO price and significantly down from its post-IPO high of $225.64. Overall, the stock is down about 19% since its market debut, wiping approximately $100 billion from the company's market value. This decline also means investors betting against the stock have accumulated about $8.7 billion in unrealized profits. Analysts remain divided on the valuation, with many considering it still overvalued despite the sell-off, while others see the dip as a potential long-term buying opportunity.
Pipers Sandler initiated coverage with a Neutral rating and a $156 price target. Despite the recent setback and stock volatility, Wall Street analysts are largely optimistic, with 27 out of 32 recommending a buy, four neutral, and only one sell. However, concerns remain about the substantial annual investment requirements, potentially in the tens of billions of dollars, and other near-term challenges like lock-up expirations and uncertainty surrounding a potential Tesla acquisition. The incident highlights how the market will scrutinize the newly public company's progress on its technologically ambitious rocket program.
