Starship Scrubs Countdown, Starlink V5 Launches — SpaceX Stock Caught Between Two Stories

The same week SpaceX unveiled a radically lighter Starlink V5 receiver, a Starship engine failure grounded the company’s most ambitious test flight yet — a split-screen moment that perfectly captures the tension between its cash-generating broadband business and its capital-intensive rocket development. The stock, already nursing a 31% monthly decline, tumbled further on Thursday after four of 33 Raptor engines failed to ignite on Superheavy Booster 13, triggering an automatic abort seconds before liftoff at Starbase, Texas.

The scrubbed Flight 13 was supposed to be a milestone: the first deployment of operational Starlink V3 satellites and an in-space reignition test. According to SpaceX, 29 of 33 engines fired, but the vehicle’s onboard computer halted the countdown. CEO Elon Musk later said two of the faulty engines need replacing, targeting a new attempt early next week. The failure follows a May 2026 flight that saw the booster miss its landing and the upper stage lose an engine, and comes just days after the FAA lifted its grounding order on July 13.

The stock market reaction was immediate and brutal. On Europe’s trading boards, SpaceX shares changed hands at €109.52 around midday Thursday, down 4.47% on the day and barely 0.46% above a fresh 52-week low set earlier in the session. The New York closing price of $131.11 the prior day marked the first time the equity had traded below its $135 IPO price since the record $85.7 billion listing on June 12. After-hours electronic trading saw the stock slide further toward $124. The divergence in European quotes — a closing print of €114.64 versus a later intraday plunge to €109.52 — underscores just how fluid the situation became as news of the abort rippled through markets.

With only about 5% of the 13 billion shares in free float, short sellers have piled in. Leerverkäufer now account for 29% of the float, or roughly $25 billion in notional value, and have already booked $8.7 billion in paper profits, according to industry data. A looming lockup expiration threatens to add more supply: KeyBanc estimates roughly 11% of shares could be freed around the next earnings report, with additional tranches unlocking through 2027. Musk’s own 42% stake remains locked until June 2027.

Should investors sell immediately? Or is it worth buying SpaceX?

Yet not all investors are running for the exits. Cathie Wood scooped up about 123,000 shares worth $17 million on July 15, betting the selloff has overshot. Wall Street analysts remain broadly bullish: 27 of 31 rate the stock a “Buy,” with a consensus price target of $242. Deutsche Bank initiated coverage at $255, while JPMorgan’s Seth Seifman counsels caution given the technical hiccups. The stock’s RSI of 37.6 signals selling is advanced but not yet oversold, leaving room for either a bounce or further decline.

Away from the launchpad, SpaceX’s other revenue drivers are humming. The new Starlink V5 receiver weighs just 1.1 kilograms — less than half its predecessor — measures 384 by 306 by 34 millimeters, and draws 35 to 50 watts, making it suitable for off-grid solar installations. SpaceX promises peak speeds above 375 Mbps alongside a new Wi-Fi 6 router. Meanwhile, NASA selected SpaceX to provide laser communication terminals for the Orion spacecraft on the Artemis III mission, capable of beaming 4K video back to Earth.

For now, all eyes are on the next launch attempt. If Starship Flight 13 succeeds in deploying the first operational Starlink V3 satellites, it could dramatically expand network capacity and restore some confidence in SpaceX’s ability to execute. If it fails again, the stock’s dip below the IPO price may prove to be more than a footnote.