SpaceX slips premarket after Starship launch is aborted

SpaceX shares moved lower before Friday’s open after the company called off a Starship test flight in Texas because some engines did not ignite. For everyday investors, the move shows how closely the market is now tying SpaceX’s public stock to the pace and reliability of its rocket test program.

The stock was down 3.5% in premarket trading, CNBC reported, after losing more than 3% in extended trading following Thursday’s aborted launch attempt. CNBC’s quote data showed SpaceX, trading under SPCX, down 3.58% at $126.41 in early trading.

SpaceX had been aiming to launch its Starship rocket during a 90-minute window that opened at 5:45 p.m. Texas time on Thursday, according to CNBC. The company stopped the launch sequence at the last second after an engine ignition failure.

Elon Musk, SpaceX’s founder, said on X that some engines failed to start, which triggered an automatic abort. He added that the company was offloading propellant, meaning it was removing rocket fuel and oxidizer from the vehicle after the stopped attempt.

Musk later said in another post on X that two Raptor engines would be removed and replaced. He said SpaceX planned to try again early next week.

Why the test matters to the stock

Rocket tests are part of SpaceX’s development cycle, but they now have a more direct market audience because the company went public in June. CNBC reported that SpaceX raised $85.7 billion in what it described as the biggest initial public offering ever, with shares priced at $135.

An initial public offering, or IPO, is the process by which a private company sells shares to public investors for the first time. Once those shares trade on an exchange, investors can react quickly to company updates, including technical setbacks, launch delays and regulatory decisions.

CNBC reported that SpaceX shares have both risen and fallen since the market debut. Thursday’s aborted Starship launch added another data point for investors watching whether the company can keep making progress on its largest rocket system.

Starship’s recent test record

The latest attempt was SpaceX’s first test flight of Starship V3 since the IPO, according to CNBC. A prior attempt in May did not go as planned after the Starship upper stage was sent toward the Indian Ocean.

During that May test, the Super Heavy booster failed to complete a controlled landing in the Gulf of Mexico after five of its 33 Raptor engines failed to reignite, CNBC reported.

The U.S. Federal Aviation Administration ordered an investigation after that mishap. CNBC reported that the FAA cleared SpaceX on Monday to continue its test program.

For investors, the key issue is timing and execution. A launch abort does not mean a rocket has failed in flight, but it can still delay a test schedule and affect sentiment toward a company whose valuation is tied in part to ambitious spaceflight milestones.

This story draws on original reporting from CNBC.