SpaceX (NASDAQ:SPCX) shares declined around 4% in pre-market trading on Friday after the company halted the 13th test flight of its Starship rocket only minutes before its scheduled launch from Texas.
Engine issue forces last-minute launch cancellation
Chief Executive Elon Musk said the launch was automatically aborted after several of Starship’s engines failed to ignite properly.
He added that another attempt could take place “hopefully in a few days.”
A livestream of the event showed the automated abort sequence being triggered moments after the rocket’s engines began their startup process. The precise reason behind the cancellation was not immediately disclosed.
The postponed mission marked SpaceX’s first major Starship test since the company’s high-profile initial public offering in June.
Stock extends post-IPO decline
The failed launch attempt added to pressure on SpaceX shares, which fell a further 4% before the opening bell on Friday after already dropping below their IPO price earlier in the week.
Wolfe Research analyst Myles Walton said a successful next launch would be an important catalyst for investor confidence.
“Assuming the Flight #13 moves forward next week with a successful flight, it would help confidence into their first earnings call in early August as well as start the clock ticking to the all-important Flight #14 orbital flight test, which unlocks Starship to deploy the next-gen Starlink satellites,” Walton wrote in a research note.
Starship remains central to SpaceX strategy
The latest delay represents another challenge for SpaceX’s Starship programme, which is expected to play a key role in future missions to Earth orbit, the Moon and eventually Mars.
The rocket has experienced recurring engine-related issues, including during its 12th test flight in May, which prompted an investigation by the U.S. Federal Aviation Administration.
Walton also highlighted the importance of a successful launch ahead of a significant increase in the company’s freely tradable shares.
“With significant shares free-to-trade in August (~1.2B incremental shares), getting a clean Flight #13 will be important to have into that potential supply influx, particularly given the persistent stock fade in recent weeks,” he added.