SpaceX stock fell sharply in U.S. trading on Thursday, November 5, as a wider technology selloff added pressure to Elon Musk’s aerospace and satellite company.
SpaceX shares were trading at about US$124.39 at 11:45 a.m. Eastern Time, down US$11.53, or 8.48 per cent, from the previous close.
The stock moved between US$120.44 and US$135 during the session, according to market data.
The decline extended a difficult stretch for the newly public company.
SpaceX priced its initial public offering at US$135 per share in June, meaning the stock was trading below that level during Thursday’s session.
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Why SpaceX stock is falling
The immediate pressure came as investors broadly reduced exposure to technology and artificial-intelligence companies.
The market move has affected shares tied to large technology spending, particularly businesses whose valuations depend on future growth and major infrastructure investments.
SpaceX has increasingly presented itself as more than a launch company.
Its business includes Starlink connectivity, launch services and a growing artificial-intelligence and computing operation.
That expansion has given investors a larger growth opportunity to value, but it has also increased questions about capital requirements, execution and the time needed to generate returns.
SpaceX’s third-quarter filing showed that the company’s expenses rose substantially as it expanded its Super Intelligence infrastructure and continued investing in Starship and related facilities.
The company also said its future capital needs could vary depending on the pace and scale of those initiatives.
Strong earnings have not prevented the selloff
The stock decline followed a strong third-quarter financial update.
SpaceX reported US$14.6 billion in revenue for the quarter ended September 30, up 161 per cent from the same period a year earlier, along with net income of US$4.4 billion.
The results reflected growth in Starlink and a sharp increase in the company’s Super Intelligence business.
SpaceX said connectivity revenue benefited from higher subscriber numbers, while enterprise and government revenue also increased.
Those figures have not removed investor concerns about the scale of the company’s spending.
SpaceX’s regulatory filing described significant infrastructure and cloud-computing costs tied to its data-centre expansion, alongside continuing investment in launch systems and satellite capacity.
The market reaction suggests that investors are looking beyond headline revenue growth and focusing more closely on how quickly the company can convert its expansion plans into durable cash flow.
Election results add political uncertainty
SpaceX stock has also faced renewed scrutiny after the November 3 U.S. midterm elections changed the political balance in Washington.
Investors are assessing whether a more assertive congressional opposition could increase scrutiny of Musk’s federal contracting interests and other government-facing businesses.
That concern is separate from SpaceX’s quarterly operating performance, but it can still affect how markets assess regulatory risk, government relationships and the prospects for future projects.
SpaceX’s filing identified regulation, capital-market volatility, future financing needs and the potential combination of SpaceX with Tesla as factors that could affect the company and its share price.
It did not say that a Tesla transaction had been agreed.
What investors are watching next
Investors will likely focus on whether the company can maintain rapid Starlink growth while funding its artificial-intelligence buildout and space programs.
- Starlink subscriber growth and average revenue per user.
- Spending on computing infrastructure, data centres and advanced chips.
- Progress on Starship development and launch capacity.
- Operating cash flow and the pace of capital expenditures.
- Regulatory developments involving SpaceX’s government contracts and facilities.
SpaceX reported US$51.3 billion in cash and cash equivalents at September 30, along with US$38.6 billion in short-term marketable securities and additional available credit facilities.
That provides a substantial financial cushion, but the company also warned that its growth plans could require further financing depending on market conditions and the scale of its investments.
For now, Thursday’s decline reflects a combination of broad technology-market weakness and company-specific uncertainty rather than a new announcement that SpaceX’s operations have materially deteriorated.
The next test will be whether the company’s revenue and profitability growth can keep pace with investor expectations as SpaceX expands from rockets and satellite internet into one of the most capital-intensive artificial-intelligence infrastructure strategies in the market.
Frequently Asked Questions
What happened to SpaceX stock on November 5, 2026?
SpaceX shares were trading at about US$124.39 at 11:45 a.m. Eastern Time, down 8.48 per cent from the previous close.
Why is SpaceX stock falling?
The decline reflects a broad technology and AI-sector selloff, alongside investor concerns about political scrutiny, capital spending and the company’s large infrastructure plans.
What was SpaceX’s IPO price?
SpaceX priced its initial public offering at US$135 per share in June 2026.
How did SpaceX perform in the third quarter of 2026?
SpaceX reported US$14.6 billion in revenue and US$4.4 billion in net income for the quarter ended September 30, 2026.
What should investors watch next?
Key issues include Starlink growth, AI infrastructure spending, cash flow, Starship development, regulation and any future discussions involving Tesla.
Fact-Checked: Key share-price, earnings and liquidity figures were checked against current market data, SpaceX investor-relations materials and the company’s SEC filing.
Disclaimer: This article is for news and information purposes only and is not investment advice.