SpaceX Stock Falls Below $140 After FAA Clears Starship

SpaceX shares slide despite FAA sign-off on Starship

SpaceX shares dipped below the $140 mark even after the U.S. Federal Aviation Administration (FAA) completed its review of the Starship Flight 12 mishap and authorized the company to move forward with preparations for Flight 13. The pullback pushes the stock nearer to its $135 IPO reference price, reversing some of the post-debut gains and keeping markets on edge.

Market moves and recent trading pressure

According to Yahoo Finance data, SpaceX was trading around $139 in the most recent session, down roughly 4% on the day and more than 12% over the past five trading sessions. The weakness has erased a portion of the premium built after the company’s public listing last month, when shares opened near $150 and flirted with three-figure highs. Despite operational headway, investor sentiment has favored risk-off flows, leaving the stock nearer to its IPO valuation.

Index inclusion and limited upside from passive demand

Last week’s addition of SpaceX to the Nasdaq-100 index — an event that typically draws passive inflows from index-tracking ETFs and institutional funds — has not yet translated into sustained buying pressure. Index inclusion often supports liquidity and demand, but in this instance the listing effect has been insufficient to offset recent selling and broader market dynamics.

FAA closes Flight 12 investigation, clears the way for Flight 13

The FAA confirmed it has closed its investigation into the Flight 12 anomaly after reviewing SpaceX’s internal inquiry and corrective measures. The regulator noted no public injuries or property damage were reported from the incident and indicated that the company may proceed with preparations for Starship Flight 13, provided remaining safety and licensing requirements are satisfied.

That regulatory clearance represents a major operational milestone for SpaceX’s aerospace program. Flight execution and subsequent performance will now serve as the next potential catalyst for both technical validation and investor confidence.

Operational progress vs. market sentiment

Even with the FAA sign-off, market participants appear focused on near-term selling pressure rather than the program’s technical progress. SpaceX is expected to attempt Flight 13 as soon as this week, and successful launches historically have the potential to shift sentiment quickly. However, until investors see consistent operational follow-through, the stock may remain volatile.

Wall Street remains upbeat amid the pullback

Several major brokerage houses have maintained bullish outlooks on SpaceX despite the recent decline. Firms including Morgan Stanley, Goldman Sachs, and Citi have reiterated buy ratings, while Raymond James initiated coverage with a Strong Buy and set an $800 price target — implying substantial upside from current levels.

Those bullish projections contrast with the immediate price action, where shares remain well under prior peaks near $200. The divergence highlights a common market dynamic: long-term analyst conviction can coexist with short-term investor caution.

Why crypto and blockchain audiences should watch

Although SpaceX is not a crypto company, its stock moves and major corporate milestones can influence broader risk sentiment across global markets, including cryptocurrency and blockchain sectors. Large-cap technology and growth-stock volatility sometimes correlates with crypto market swings, meaning SpaceX’s upcoming launches and regulatory updates could indirectly affect investor appetite in crypto assets such as Bitcoin and Ethereum.

For now, the next launch window and execution outcomes for Starship Flight 13 will be the most closely watched variables. Successful flight testing could restore some confidence and spark renewed interest from both institutional and retail investors, while setbacks could prolong the current corrective phase.