Why SpaceX Stock Is Down and Up Today
It's hard to keep a good space stock down.
By Rich Smith
Is Space Exploration Technologies (SPCX +0.98%) finally finding its footing post-IPO?
Investors can hope. Shares of Elon Musk's famed space venture tumbled nearly 5% in early trading Tuesday. This might have extended a decline that SpaceX itself sparked Monday when it announced it's raising $20 billion in debt to add to the the $100 billion it has after holding its IPO.
But then a miracle happened. Investors opened up the newspaper to discover SpaceX is building an entirely new market in delivering cargo from space to Earth -- and now SpaceX stock is up 2.1% through 10:15 a.m. ET.
Announcing Starfall
SpaceX calls the new business "Starfall." This morning, the company launched a Falcon 9 rocket carrying an uncrewed reentry capsule of the same name. The Falcon descended to make a successful landing nine minutes later.
We don't yet know what happened with the Starfall capsule that it (presumably) put in orbit. We do know what SpaceX intends: "to demonstrate capabilities for future transport and delivery of goods through space."
What this means for SpaceX stock
Like so many things-Elon Musk, it's not yet clear how big a deal Starfall will be for SpaceX. "Future transport and delivery of goods" could refer to moving Helium-3 and other resources from the moon to Earth. It might refer to dropping down goods, manufactured at space stations in orbit. It might refer to suborbital rocket launches that transport goods from place to place on Earth.
It might refer to all three!
For now, this is just a demo project to show that SpaceX can deliver "1,000 kilograms (2,200 pounds) of payload" to Earth, as SpaceX told the FAA in its launch application. Starfall might carry more in future launches, though.
The future's uncertain -- but SpaceX is blazing the trail.