SpaceX aborts Starship test flight, sending stock lower

In a setback for SpaceX, the highly anticipated launch of its Starship mega rocket was called off on Thursday. CEO Elon Musk expressed hopes for a new attempt in just a few days. A 90-minute window for launch began at 6:45 p.m. ET, but shortly thereafter, the company communicated via livestream that they were suspending operations for the day. The decision stemmed from an issue where some engines failed to ignite, prompting an automatic abort of the launch sequence, as noted by Musk in a post on social media platform X. In response to the news, SpaceX's stock experienced a decline of over 3% during after-hours trading, continuing its downward trend below its initial public offering (IPO) price of $135. This marked a fifth consecutive day of losses for the stock. The Starship rocket was set to launch from SpaceX's Starbase facility in South Texas when a hold was activated on the booster, resulting in the engines shutting down just as they were about to ignite, according to a SpaceX team member during the livestream. This launch was particularly significant as it would have been the first test flight of the enhanced Starship V3 since the company's recent IPO, which took place last month. A previous test flight of Starship V3 in May faced challenges as well. After a successful launch, several engines in the rocket's lower stage failed to reignite, leading to a crash into the Gulf of Mexico. Following this incident, the Federal Aviation Administration (FAA) mandated an investigation by SpaceX. On Monday, the FAA allowed the rocket to fly again, citing two primary causes for the earlier mishap: heat effects on propulsion system components during ascent and incorrect engine alarm settings. In preparation for Thursday's mission, Starship was set to launch 20 next-generation Starlink satellites, which were intended to deploy their solar arrays and antennas while connecting to the existing Starlink network. SpaceX indicated that the satellites would disintegrate upon reentry roughly 20 minutes post-deployment. The upcoming 13th test flight of Starship is being closely monitored by investors, as the success of this rocket is crucial for SpaceX's plans to expand its Starlink satellite internet service and collaborate with NASA on future Artemis test flights aimed at lunar exploration. Since entering the public market last month, SpaceX shares initially soared but have seen a significant decline, dipping below the $135 IPO price on Wednesday and closing at $131.11 on Thursday. With the IPO, SpaceX raised a staggering $85.7 billion, marking it as the largest IPO in history.