Stock Decline Accelerates on Launch Setback

SpaceX stock experienced a sharp decline after the Starship 13th test flight was halted seconds before liftoff. The abort occurred when multiple Raptor engines on the Super Heavy booster failed to ignite properly. This event added to selling pressure on a stock already in a multi-week downturn.

Shares opened lower and traded near $126, marking losses for several consecutive sessions. The stock has fallen roughly 45% from its post-IPO peak above $200, erasing substantial market value. At one point during the decline, the company lost more than $1 trillion in capitalization from its recent high.

Details of the Starship Launch Abort

The launch attempt at Starbase in Texas stopped during the ignition sequence. Telemetry indicated that four of the 33 Raptor engines did not start, activating the automated safety system. SpaceX teams proceeded to safe the vehicle by offloading propellant.

Musk later stated that two Raptor engines would be replaced to ensure a reliable flight. The company reset the schedule for Monday, July 20, at 6:45 p.m. ET. The mission had been set to carry upgraded Starlink satellites and advance vehicle development goals, including stage separation and landing burns.

Broader Market Reaction and Context

The stock's performance follows its record IPO earlier in June, which raised significant funds and initially drove strong gains. Enthusiasm cooled as profit-taking set in, and recent technical issues with Starship testing contributed to the slide. SpaceX joined the Nasdaq-100 index, attracting more institutional focus, but that has not prevented the recent losses.

Market voices offered differing views. Some described the selloff as an overreaction to a short-term delay, while others noted potential questions around execution timelines. Starship remains a core part of NASA’s Artemis program for lunar missions.

Impact on Elon Musk’s Net Worth

The stock decline directly affected Elon Musk’s estimated wealth. His net worth fell to approximately $997 billion, dropping below the trillion-dollar mark. SpaceX holdings form the largest part of his fortune. At its recent peak, Musk’s wealth had reached nearly $1.45 trillion when shares traded above $200.

Starship Program and Future Outlook

Starship serves as a key asset for SpaceX’s long-term objectives, including satellite deployment and deep-space missions. The FAA had recently cleared the company for resumed testing after reviewing a prior flight. Engineers continue work on vehicle improvements between attempts.

Additional factors include potential AI-related contracts, such as discussions with the Pentagon for computing resources, and upcoming earnings reports. A large share unlock is also scheduled for early August.