SpaceX Stock Extends Slide Despite $1.6B Space Force Deal
SpaceX shares fell 3.32% on Wednesday, July 29, closing at $112.55. The drop got here at the same time as the corporate landed a recent $1.6 billion order from the US Space Force protecting 18 Falcon 9 launches by means of 2027.
The slide is a part of a broader unraveling since SpaceX’s Nasdaq debut. The inventory priced its IPO at $135, then surged to an all-time high of $225.64 in mid-June earlier than reversing exhausting.
A Contract That Couldn’t Halt the Slide
Wednesday’s drop extends a tough stretch for SpaceX inventory. Shares hit a record low of $107.01 on Tuesday and nonetheless commerce under the corporate’s $135 IPO value. The inventory has fallen roughly 29% over the previous month. Investors at the moment are bracing for a share unlock round August 6 that would add recent provide to the market.
Rivals face setbacks of their very own. ULA remains to be working by means of a months-long technical review of a booster separation difficulty on its Vulcan rocket. Blue Origin remains to be investigating a launchpad explosion that grounded its New Glenn rocket in May.
Those issues depart SpaceX with a good wider lead in Pentagon launch work. Some lawmakers nonetheless query the army’s reliance on a single contractor.
Inside Space Force’s Latest Order
Space Force split the missions throughout two process orders below its National Security Space Launch Phase 3 Lane 1 program. SpaceX competes there with United Launch Alliance, Blue Origin, and different US launch corporations for army work. The rockets will carry satellites that detect and observe airborne threats. That work falls below the Pentagon’s Space Based Sensing and Targeting effort.
The order builds on May’s Space Force win, when SpaceX picked up $6.5 billion for army satellite tv for pc work. Reuters reports the corporate has now landed not less than $7 billion in Pentagon offers this 12 months. Much of that spending ties again to the Trump administration’s roughly $185 billion Golden Dome missile protection program.
The new contract provides recent income. It might not regular the inventory, although, forward of the August share unlock and SpaceX’s August 4 earnings report. Investor sentiment, not Pentagon spending, might resolve that final result.
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