Shares of Elon Musk’s rocket and AI company dropped in premarket trading on Friday after SpaceX called off the thirteenth test flight of its Starship rocket.
A problem with the booster engines caused the delay. Some engines did not ignite, which triggered an automatic abort. The company said it will replace two engines before trying to launch again early next week.
SpaceX is still developing Starship and setbacks are part of the process. Still, this delay added to a tough period for the stock. Shares dropped about 3.6% in premarket trading, hitting a new low after closing down 3.1% on Thursday. That was the fifth day in a row of declines and Thursday was the first time shares closed below the company’s IPO price.
Investors are also worried about the company’s high valuation and technical challenges. SpaceX trades at about 45 times its estimated 2026 sales. Soon, around 20% of its shares will become available to trade after the next quarterly conference call. The Starship delay is another concern for investors.
Starship’s progress is especially important for SpaceX. The rocket is key to lowering the cost of reaching orbit, which could make things like orbital AI data centers possible. Analysts say Starship is the main driver of SpaceX’s long-term value. They also point out that the company’s future depends on technologies that have not yet been proven at a commercial scale, such as a fully reusable Starship that could handle thousands of launches each year.
That level of activity is hard to imagine in today’s space industry. In 2025, there were about 330 launches worldwide, and SpaceX did more than half of them. The goal of reaching thousands of launches each year is why investors are paying close attention to Starship’s next test.
