SpaceX calls off Starship test as shares extend post-IPO slide

SpaceX halted a planned Starship test flight from its Starbase site in South Texas on Thursday after an engine-start problem triggered an automatic abort. The scrub came as SpaceX shares fell more than 3% in extended trading, according to CNBC, extending a five-day decline and pushing the stock further below its $135 initial public offering price.

The launch window opened at 6:45 p.m. ET and was scheduled to last 90 minutes. Within minutes, SpaceX said on its livestream that it was standing down for the day. Elon Musk, the company’s chief executive, wrote on X that “some of the engines didn’t start,” causing the launch system to abort automatically, and said SpaceX would try again “hopefully in a few days.”

A SpaceX employee said during the livestream that a hold had been triggered on the booster, shutting down the engines just as ignition was beginning. In launch operations, that sequence is designed to stop the vehicle before liftoff if onboard or ground systems detect conditions outside permitted limits.

Test flight follows prior booster mishap

The flight would have marked another test of Starship V3, the upgraded version of SpaceX’s roughly 400-foot rocket, after a May launch that did not complete all planned objectives. In that earlier test, Starship lifted off successfully, but several engines in the lower stage failed to reignite for a controlled return. The booster then fell into the Gulf of Mexico.

The Federal Aviation Administration required SpaceX to investigate that anomaly. On Monday, the FAA said it had cleared Starship to fly again after reviewing the company’s final mishap report.

According to the FAA, the report identified two most probable causes for the loss of the Super Heavy booster: heat effects on propulsion components during ascent and incorrect settings in the engine alarm system. The agency said SpaceX listed four corrective actions, including changes to vehicle hardware and software intended to prevent a repeat of the event.

Starlink payload was part of the mission plan

SpaceX said the Thursday mission was expected to carry 20 functioning next-generation Starlink satellites. The company said those satellites were intended to deploy solar arrays and antennas, then attempt to connect with the wider Starlink network.

SpaceX also said the satellites were expected to reenter and burn up about 20 minutes after deployment. Such short-duration deployments allow the company to test satellite systems without leaving the spacecraft in orbit for long-term operations.

Investors are watching Starship because the vehicle is central to SpaceX’s plans for Starlink, its satellite internet business, and to its work with NASA on Artemis test flights tied to the agency’s next planned moon landing. The rocket is designed to be reusable, a feature SpaceX has presented as important to reducing launch costs and increasing flight cadence.

Stock remains under IPO price

SpaceX went public last month in a record-setting IPO. CNBC reported that the offering raised $85.7 billion including the underwriters’ option, making it the largest IPO on record.

The shares rose sharply after listing, then retreated. CNBC reported that the stock briefly moved below its $135 offering price on Wednesday and continued lower on Thursday, closing down more than 3% at $131.11 before falling further in after-hours trading.

This story draws on original reporting from CNBC.