SpaceX’s Starship Just Reached Orbit, in What Should Be a Major Success for the Company. But Its Stock Price Did the Last Thing You’d Expect

On Monday morning, SpaceX launched its 14th test flight of the Starlink spacecraft from its test facilities in South Texas. The enormous rocket roared into the sky, reaching speeds of over 16,000 mph and surpassing 171 miles in orbit. SpaceX's Dan Huot announced the successful orbital insertion, receiving enthusiastic cheers from SpaceX HQ. This major achievement marks a significant step for SpaceX's development of the ambitious Starship launch platform, after three years and 13 explosive test launches.

Despite the apparent success, SpaceX's stock price did not rise as expected. Instead of soaring, the company's shares fell by about one percentage point. This unexpected drop comes amid numerous questions about the viability of the Starship platform and SpaceX's ongoing challenges, such as reliably landing both the Super Heavy booster and Starship spacecraft, as well as ensuring safe astronaut transportation ahead of NASA's upcoming Moon missions.

The company's AI business, which is currently burning through significant cash, remains a financial concern as SpaceX's valuation sits just under $2 trillion.

The launch was not without drama, as there was confusion around 20 minutes into the flight about whether the spacecraft would attempt an orbital injection burn. Engineers carefully reviewed data, and after one vacuum Raptor engine failed, they were cautious about proceeding with the six orbital revolutions planned for Starship. The outcome holds great importance, as NASA aims to test the spacecraft ahead of its planned Moon mission in 2028.

A successful orbit insertion is a critical milestone for SpaceX, with plans to load astronauts into the spacecraft within the next year. SpaceX also deployed 26 Starlink satellites, enabling rapid expansion of its satellite broadband network.