SpaceX stock declined in Friday pre-market trading to approximately $115.94, down 1.95% from Thursday's close of $118.24, as investors responded to heightened short-selling activity, delays to the company's latest Starship mission, and new disclosures from major shareholder Alphabet. The retreat followed Thursday's 2.59% gain, which saw shares recover from an intraday low near $111 to a session high of approximately $118.80. The pullback reflects ongoing volatility since SpaceX's June initial public offering at $135 per share, with the stock remaining well below its post-IPO peak of $225.64 amid concerns about valuation, spending requirements, and short-seller pressure totaling an estimated $15.5 billion in paper profits.
SpaceX Stock Declines 1.95% in Friday Pre-Market Trading
Space Exploration Technologies Corp. shares closed Thursday's session at $118.24 after gaining 2.59%. The stock traded as high as approximately $118.80 during the session after recovering from an intraday low near $111. However, shares surrendered some gains before Friday's opening bell, trading at approximately $115.94 in pre-market activity, representing a 1.95% decline.
The stock remains significantly below its post-initial public offering high of $225.64. SpaceX went public in June at an IPO price of $135 per share.
Short Sellers Accumulate $15.5 Billion Paper Profits Since IPO
Short sellers have accumulated an estimated $15.5 billion in paper profits since the IPO as SpaceX shares fell below their offer price. Around 360 million shares, equivalent to approximately 56% of the company's freely tradable stock, were reportedly on loan to short sellers.
Alphabet Discloses $94.1 Billion SpaceX Holdings at End of June
Alphabet disclosed an investment in SpaceX as part of its latest financial reporting. The Google parent valued its SpaceX holdings at approximately $94.1 billion at the end of June, including shares subject to short- and longer-term selling restrictions.
The disclosure provided additional detail on the scale of Alphabet's relationship with SpaceX, which dates back to an investment made alongside Fidelity in 2015. The subsequent decline in SpaceX's share price reduced the current market value of that position.
SpaceX Postpones Starship Launch Due to Weather and Engine Issues
SpaceX postponed its latest Starship launch from South Texas after weather conditions interfered with the visibility required to monitor the spacecraft's heat shield during flight.
The mission had already been delayed after several engines on the Super Heavy booster failed to ignite during an earlier launch attempt. SpaceX subsequently replaced multiple Raptor engines and completed more ground testing. The upcoming flight is expected to carry 20 Starlink satellites while testing Starship's deployment and re-entry capabilities.
Falcon 9 Successfully Launches 24 Starlink Satellites from California
SpaceX's Falcon 9 program maintained a steady launch cadence. The company successfully launched 24 Starlink satellites from California on July 21, one day after a rare last-second abort.
FAQ
What caused SpaceX stock to decline in Friday pre-market trading?
SpaceX stock declined 1.95% to approximately $115.94 in Friday pre-market trading due to heightened short-selling activity, delays to the company's latest Starship mission, and new disclosures from major shareholder Alphabet regarding its $94.1 billion holdings at the end of June.
How much have short sellers profited from SpaceX stock since its IPO?
Short sellers have accumulated an estimated $15.5 billion in paper profits since SpaceX's June initial public offering as shares fell below the $135 IPO price. Around 360 million shares, equivalent to approximately 56% of the company's freely tradable stock, were reportedly on loan to short sellers.
Why did SpaceX postpone its latest Starship launch?
SpaceX postponed its latest Starship launch from South Texas after weather conditions interfered with the visibility required to monitor the spacecraft's heat shield during flight. The mission had already been delayed after several engines on the Super Heavy booster failed to ignite during an earlier launch attempt, prompting SpaceX to replace multiple Raptor engines and complete more ground testing.
