Space Exploration Technologies stock closed at $144.75, down 9.14%, as investors moved to take profits following a sharp rally and a significant share unlock. The launch vehicles and satellite broadband provider had jumped 10% the previous day on the strength of its third-quarter earnings, but those gains were reversed by Thursday's trading session.
Trading volume reached 193.8 million shares, a figure approximately 96% higher than the company's three-month average of 99.1 million shares. Since its initial public offering in 2026, SpaceX shares have declined by 10%.
The decline occurred alongside broader market weakness. The S&P 500 fell 1.22% to close at 7,663, while the Nasdaq Composite dropped 2.60% to 26,009. Peer companies in the aerospace and satellite connectivity sectors also saw losses; Rocket Lab closed at $51.22, down 4.56%, and Planet Labs PBC closed at $13.08, down 4.60%.
Market participants point to two primary drivers for the sell-off: the release of approximately 911.5 million insider shares into circulation and concerns over rising capital expenditures. SpaceX reported third-quarter capital expenditures of $19.6 billion, a substantial increase from $6.9 billion in the same period of the prior year.
Despite the stock's recent slide, the company announced strong financial performance on Oct. 20. Third-quarter sales rose 161% year over year to reach $14.6 billion. A significant portion of this growth was attributed to the company's Super Intelligence division, which aims to leverage the artificial intelligence sector. Revenue from this division reached $7.6 billion in the third quarter, up sharply from $813 million in 2025.
Sentiment had also been influenced by CEO Elon Musk's comments on the earnings call regarding a potential merger with Tesla. Musk stated that both SpaceX and Tesla have formed special committees to discuss the idea.
Earlier this month, SpaceX also impacted the telecommunications sector after revealing a nationwide low-band spectrum deal with Grain Management. This agreement represents a step toward providing direct-to-device phone coverage across the United States.