SpaceX shares fell as much as 6.9% on July 17 after the company scrubbed a Starship launch because of an engine issue.

The decline pushed the stock below its US$135 initial public offering price and reduced the company’s market value to about US$1.61 trillion, from US$2.64 trillion at the June 16 close.

Elon Musk said on X that SpaceX would replace two Raptor engines, likely delaying the next launch attempt until early next week.

Analysts said the setback, along with upcoming insider lockup expirations that could release more shares into the market, was prompting some investors to cut risk despite positive analyst coverage and an average 12-month price target of US$235.34.

The latest scrub comes in a test program that has flown 12 times, with seven successes and five failures. After three unsuccessful Starship flights in 2025, SpaceX completed its planned objectives on flights 10 and 11.

The US Federal Aviation Administration has authorized a higher Starship/Super Heavy launch rate from Boca Chica. Delays to the vehicle also matter beyond the stock market because Starship is part of NASA’s Artemis lunar landing program.

🔗 Source: Bloomberg