E-Paper
SpaceX stock remains stagnant after 20% fall as investors await Tesla earnings
SpaceX stock remained stagnant after a sharp fall as investors await Tesla earnings, Starship launch, Q2 results, Starlink growth and merger updates.
SpaceX stock remained mostly stagnant, showing very little movement after falling sharply over the past few days. The stock is in focus because Tesla is reporting its second-quarter earnings later on Wednesday. Investors are watching closely since both companies are led by Elon Musk.
Even though SpaceX stock rose slightly on Tuesday, it has still dropped about 20% since early last week. The fall in the stock came after SpaceX cancelled the planned launch of its Starship V3 rocket last Thursday. The launch was called off because of an engine issue. After the launch was cancelled, SpaceX shares fell again in Friday's trading session.
SpaceX stock price
On Monday, the stock closed at an all-time low of $119.85, marking its weakest closing price so far. Some market experts now believe $100 is the next important price level to watch if the stock continues to fall and no major positive news comes out, according to Yahoo Finance. The company's market value has fallen by more than $1.1 trillion during this decline. Investors are closely watching key price levels because they can show how strong or weak a stock is.
Starship test launch
On July 10, SpaceX stock closed below $150 for the first time. That was the same price at which the stock first started trading. On July 17, the stock closed below $125, which was its IPO price from June 12. SpaceX is now aiming to carry out the next Starship test launch as early as Thursday, according to the company, as cited by Yahoo Finance.
Also read: OpenAI AI models escape Sandbox, hack Hugging Face during security test, raising AI safety concerns
A successful Starship launch could become an important positive trigger for the stock after recent setbacks. Another major event for investors is August 4, when SpaceX plans to release its second-quarter financial results. Investors will closely watch the performance of SpaceX's Starlink satellite internet business to understand how the company is growing.
Starlink and AI
The market will also look at new AI computing deals and spending on AI products such as Grok to judge the company's future plans. On August 6, a large insider share unlock is scheduled. Around 900 million shares, or about 20% of eligible locked shares, will become available for trading. Another 10% of locked shares can also become available if the stock trades above $175.50 for at least five out of ten consecutive trading days.
Tesla is releasing its second-quarter earnings on Wednesday evening, and that is also important for SpaceX investors. Investors are paying attention because Elon Musk has reportedly discussed the idea of merging SpaceX and Tesla, according to Yahoo Finance. According to market observers, a merger becomes more difficult if SpaceX's stock keeps falling while Tesla's stock rises.
That is because SpaceX is expected to be the company buying Tesla in such a deal. The report also noted that Musk owns a much larger stake in SpaceX than he does in Tesla, which is one reason why SpaceX is seen as the likely acquirer if a merger ever happens.
