SpaceX Investors Are Losing Their Minds Trying to Figure Out Why the Company’s Stock Failed to Go Up Yesterday

SpaceX's 14th Starship test flight on Monday proved to be a success, despite some issues. The enormous rocket reached orbit and released 26 V3 Starlink satellites. It even returned to Earth safely, settling in a stable orbit 171 miles above Earth. However, investors were not impressed by this achievement, as SpaceX's stock dropped over two percent on Monday.

This counterintuitive market reaction has left SpaceX backers puzzled. CEO Elon Musk has positioned the Starship as a key component of his company's future plans, including expanding the Starlink constellation and sending astronauts to the Moon. Nonetheless, the market's reaction to the launch suggests that its significance may have already been factored into the company's stock price.

SpaceX is currently valued at nearly $2 trillion, despite the fact that the company is still losing significant amounts of money each year. Its recent merger with Musk's AI company, xAI, has further deepened SpaceX's financial losses, and the company is still unclear about how it will generate revenue. Additionally, SpaceX's stock has been impacted by the fact that up to 328 million shares became eligible for sale last week, sparking a sharp sell-off.

The company's ongoing engine problems, including an unexpected engine failure during this launch, have also raised concerns about its ability to meet ambitious goals set by NASA. While SpaceX's most enthusiastic supporters are frustrated with the market's reaction, investors continue to question the company's future prospects. Despite a slight recovery on Tuesday, SpaceX still has a long way to go to recover from the losses it sustained during its mid-June IPO, when the stock price was around ten percent higher than today.