SpaceX Stock Drops After Starship's Milestone Flight

Elon Musk's vision for a reusable spacecraft has passed its most crucial test yet. Could this achievement send SpaceX stock to the moon—or to Mars?

On Monday, Starship reached orbit and splashed down in the Pacific, returning fully intact after its most significant flight to date.

The mission struck at the core of the bullish thesis for SpaceX: if Starship becomes reusable for regular flights, the company could dramatically reduce the cost of launching satellites and cargo.

This potential has underpinned some sky-high valuations. Cathie Wood, for instance, has contended that even a $1.75 trillion SpaceX valuation could appear modest if Starship operates at scale.

Despite all that, why did the share price decline?

Reasons for SpaceX's Share Decline Following Starship's Triumph

Around midday Eastern Time, SpaceX stock was trading at approximately $147.29, down 0.93%, just before the company confirmed Starship's splashdown.

The flight mostly met expectations. Starship ascended to about 170 miles, released 26 Starlink V3 satellites, endured reentry, and then uprighted itself before landing in the ocean.

The selling pressure seems to be focused on the shares themselves.

Approximately 328 million shares became tradable following the expiration of SpaceX's IPO lockup period on September 24, which could increase supply. Additionally, President Gwynne Shotwell recently executed a sale of $52.5 million in stock through a pre-arranged trading plan.

In essence, the positive Starship news arrived in a market contending with a much higher number of shares available for trading.

First orbital flight of Starship successful! https://t.co/xVNsnUKTm0

— Elon Musk (@elonmusk) September 28, 2026

What Does the Future Hold for SpaceX Stock?

For the moment, traders seem to be watching the $150 level.

According to OptionCharts, roughly 22,700 call options are open at the $150 strike for expiration this Friday. Put options are centered around $140.

Opinion among analysts is split. MoffettNathanson rates the stock as Neutral with a price target of $142, while the consensus target is $222.42.

Starship has now cleared a significant technical question. The remaining debate is whether SpaceX's current market value already accounts for that achievement.