SpaceX shares closed at a new low on Monday, three days after the company’s 13th Starship flight test completed all its major objectives. Bernstein analysts flagged the booster’s hard splashdown as the flight’s one material issue, and SpaceX reports its first earnings as a public company on Aug. 4. Up to 911.5 million insider shares could be freed for trading two days after that.
SpaceX stock fell 1.4% on Monday, closing at a new low, even after Elon Musk’s space-technology company completed all major objectives on its 13th Starship flight test. Its market capitalization has dropped by more than $1 trillion since its June 16 high.
Shares now trade at $113, a 50% decline from the post-IPO high. The stock had opened at $150 and peaked at around $226 just days later.
Flight 13 met its objectives but lost the booster
On Friday, SpaceX launched its megarocket for the 13th time, after a handful of delays had pushed the mission back by about a week. The flight deployed 20 Starlink V3 satellites, which briefly communicated with the company’s existing constellation before burning up. A single Raptor engine reignited in space, and Starship’s upper stage made a soft splashdown in the Indian Ocean.
KeyBanc analyst Michael Leshock praised the test’s near perfection in a Sunday note, writing that Flight 13 could lead to a Starship catch attempt at the pad on its next flight test. But bullish Bernstein analysts noted one material issue. The Super Heavy booster carried out the high-thrust portion of its boost-back burn with all 33 Raptor 3 engines before ending the burn early.
When the booster tried to relight 13 engines for a landing burn, only some turned on, leading to a hard splashdown in the Gulf of Mexico. Bernstein’s Douglas Harned told clients: “This was not ready for a landing on the launch pad.” Harned added that Starship is key to unlocking the valuations some Wall Street analysts think could be in SpaceX’s future, and that full reusability would better allow the company to improve Starlink and put data centers in orbit.
Earnings and a lockup release land days apart
SpaceX reports second-quarter results on Aug. 4, its first earnings report as a public company. Up to 37% of insider shares subject to a 180-day lockup schedule could be released for trading next month, with the first tranche of as much as 911.5 million shares set to be freed up on Aug. 6. Stock held by Musk and select other insiders, which together account for over 63% of pre-IPO outstanding shares, is subject to a longer lockup.
Tesla slips on the same session
Tesla stock also slipped on Monday, falling more than 1% after the company’s spending plans and its lukewarm commentary about its artificial-intelligence initiatives appeared to concern investors. That stock is down more than 30% on a year-to-date basis and has erased all gains made over the last 12 months.
On Tesla’s earnings call last week, Musk was asked about the possibility of Tesla and SpaceX merging. He touted the companies’ overlap and collaboration before acknowledging that he cannot discuss corporate combinations on an earnings call, letting Tesla’s general counsel step in.
Sources: MarketWatch, The Motley Fool
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