SpaceX (SPCX) stock is down more than 5% on Wednesday following a recent rough patch. Shares are in focus as CEO Elon Musk’s other company — Tesla (TSLA) — reports second quarter earnings after the bell.
Despite a nice pop on Tuesday, the rocket launch company’s shares have shed 20% since early last week. The drop also coincided with the company’s scrapping plans to launch Starship V3, the company’s latest spacecraft, last Thursday night, due to an engine issue.
SpaceX stock sold off during the next trading session on Friday before hitting an all-time closing low of $119.85 on Monday.
Without any new catalysts for the stock, some market watchers see $100 as the next price level to watch. Meanwhile, SpaceX has shed over $1.1 trillion in market value.
Price levels are an important market to watch for investors. Shares closed below $150 for the first time on July 10, which was the price at which the stock debuted. A week later, on the 17th, shares closed below $125, their IPO price from June 12.
The company says it is targeting Thursday as the next earliest test for Starship, which could be huge for Musk and SpaceX.
But a bigger catalyst could be Aug. 4, when the company said it will release second quarter financials. The growth of its Starlink business, new AI compute deals, and spending on AI products like Grok will be closely watched by investors gauging the health of the company.
In addition, on Aug. 6, the first big share unlock for insiders will occur, with as many as 900 million shares, or approximately 20% of eligible locked shares, set to be eligible for trade. An additional 10% unlocks if the stock trades above $175.50 or more for 5 of 10 consecutive trading days.
Meanwhile, Tesla reports its second quarter results on Wednesday night. The performance of Tesla stock is noteworthy for SpaceX investors because Musk has reportedly discussed merging the two companies.
A merger of SpaceX and Tesla becomes more difficult as SpaceX shares drop and Tesla shares jump: The belief is that SpaceX would be the acquirer, since Musk holds much more stock in the company than he does in Tesla.
Pras Subramanian is Lead Transportation Reporter for Yahoo Finance. You can follow him on X and on Instagram.
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