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Was SpaceX’s recent Starship flight test a success or a failure? Many are hailing it as a victory, but several of the megarocket’s booster’s engines failed after re-entry, causing it to explode.
SpaceX has had many similarly ambiguous tests before. But this was the first one since its much-hyped IPO earlier this summer — and it’s already clear that it wasn’t a convincing enough display to reverse the company’s fortunes on the stock market.
After hitting an all time low before the weekend and closing at $115, SpaceX shares endeavored to plummet even further on Monday, briefly dipping to $108.66 — a new nadir since going public — before stabilizing around $110. The new low is over 20 percent below its opening IPO price of $135, and less than half of its all time high of more than $225 per share.
It’s a sign of the scrutiny the company will be put through now that it’s a public entity, and comes despite certain predictions that a successful flight would help buoy the company’s shares. When Starship ran into trouble in the past, SpaceX mainly had to weather a storm of media coverage. Now, nervous investors represent yet another liability.
“One of the benefits of being private is that there wasn’t a market to weigh in on and evaluate business decisions,” David Meier, senior investment analyst at the Motley Fool, told The Washington Post.
“Being publicly traded means everything will be evaluated and information transmitted through market prices,” he added. “So every SpaceX launch, every Starlink decision and every xAI decision will be scrutinized by the market.”
Spaceflight, at least currently, isn’t an ideal match for the make-a-quick-buck capitalism that Musk extolls. SpaceX has never been profitable, losing $5 billion last year alone. As Starship’s woes illustrate, rocket development is messy and complicated; there’s no guarantee that progress will be linear, if there’s any made at all. Investors are essentially being asked to keep pouring money into an incredibly lengthy and expensive science experiment.
Meanwhile, Musk has made outrageously lofty promises that SpaceX will eventually use Starship to deploy so many data centers in space that it’d create a “sentient sun,” and establish colonies on the Moon and eventually Mars. Every failure will be compared against those outsized benchmarks, which is almost certainly part of Musk’s enduring schtick.
The thirteenth test flight on Friday was a mixed-bag. The spacecraft’s upper stage successfully made its way to suborbital space and deployed a payload of Starlink internet satellites, which briefly went online before burning up as planned. This was a first for Starship, as previous tests only used dummies. Then the ship re-entered the atmosphere and landed in the Indian Ocean in one piece without exploding.
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