SpaceX’s shares rose by over 5% on Wednesday following the announcement of a new launch date for Starship, a massive rocket crucial to the company’s future plans.
The 14th test of this rocket is set for next Tuesday morning. Assuming everything goes well, Starship will undertake a ten-hour mission, completing six orbits and deploying Starlink V3 satellites. This mission would demonstrate the rocket’s upper stage entering a stable orbit around Earth for the first time.
Investors reacted positively to this launch news, pushing the stock price to $150.88 per share, surpassing the $135 IPO price from its record-setting market debut in June. Initially, the stock peaked above $200 shortly after the debut but has since experienced a decline.
Starship stands as the largest rocket globally, standing over 400 feet tall and capable of carrying up to 100 metric tons.
This rocket is a vital element in SpaceX’s strategy, specifically designed for deploying more sophisticated Starlink satellites, which are foundational to Musk’s satellite business and a significant part of his financial portfolio. The broadband service currently boasts more than 12 million subscribers.
Starship is also intended to support the growth of the company’s AI initiatives. SpaceX owns xAI, which has created the Grok AI chatbot system. There are ambitions to develop a network of computers in orbit to facilitate more advanced AI systems—though some critics see this vision as unrealistic.
Musk’s team has argued that harnessing solar power for its computers will result in cost savings compared to other companies that rely on Earth-based data centers. Plus, the fully reusable design of Starship is expected to further reduce expenses.
The 13th launch test earlier in July was deemed successful, with the upper stage deploying 20 Starlink V3 satellites, restarting a rocket engine in space, and subsequently splashing down in the Indian Ocean. The booster stage successfully landed in the Gulf of Mexico.
As with many tech companies, SpaceX aims to reassure investors who are anxious about a possible “AI bubble” mirroring the dot-com bubble of the early 2000s.
In early August, SpaceX saw its stock price dip after announcing a significant increase in its AI expenditures, raising concerns among investors about potentially overspending on unproven technologies. This fueled speculation that the company’s impressive $2 trillion valuation might be inflated.
