SpaceX Shares Decline After Last-Minute Starship Launch Cancellation

SpaceX (NASDAQ: SPCX) shares fell in after-hours trading Thursday after the company abruptly canceled the test flight of its Starship megarocket at the last minute. The stock slid 3.6% to $126.45 in extended trading following the news.

Launch Scrubbed, Shares Fall

The launch was automatically aborted just as the vehicle’s first-stage engines began to ignite, according to a company livestream of the event. CEO Elon Musk confirmed that some of the spacecraft's engines failed to start, which triggered the abort sequence. Musk stated that the next launch attempt would be "hopefully in a few days."

The canceled flight was SpaceX's first major launch since its public listing in June. The setback is significant for the company, as the Starship is its largest and most powerful rocket, central to future missions to Earth orbit, the moon, and potentially Mars. The vehicle has previously experienced recurring engine problems.

Growing Bearish Bets

Thursday’s operational setback comes amid a dramatic increase in short interest against the company. According to data from S3 Partners, bearish wagers have ballooned in recent weeks:

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• Approximately 185 million SpaceX shares are now sold short.
• This represents about 29% of the company’s publicly tradable float.
• The total value of these bearish positions is approximately $25 billion.

This marks a substantial increase from just three weeks prior, when an estimated 40 million shares, or 5% to 7% of the float, were held short, S3 Partners reported. During Thursday's regular session, the stock hit a new all-time low of $130.74, trading below its $135 IPO price for the first time since its Nasdaq debut on June 12.

Divided Analyst Sentiment

Wall Street analysts remain sharply divided on SpaceX's valuation, reflecting broader market uncertainty over the company's prospects. Raymond James holds a highly optimistic $800 price target, while CFRA recently initiated coverage with a $115 target. The average analyst consensus sits at $242.22, according to Investing.com, implying significant potential upside but doing little to counter near-term pressure from valuation concerns and an approaching lock-up expiration.