It’s been a month since SpaceX CEO Elon Musk made his astral AI mega corporation public. Investors and shareholders saw it as an opportunity to either associate themselves with the artificial intelligence industry or earn a massive return. Skepticism later grew after its stock peaked and began declining after that.
As of Jul. 13, SpaceX’s market value has dropped to $145. Musk may have foresaw this financial disaster, as multiple news outlets confirmed that he postponed his Jun. 10 CNBC interview.
What Was Musk’s CNBC Interview About?
According to anchorwoman Julia Boorstin and her cohosts, Elon Musk scheduled his first televised interview after establishing the AI IPO. “We were expecting to start an interview with [him],” she told the audience. “We just got word that he has to postpone. […] We wanted to discuss his thoughts on Grok 4.5, which launched on [Jul. 8], saying and tweeting that it is more efficient than its rival platforms.”
Many viewers turned their attention towards the declining SpaceX stock on their screens. The live graphic portrayed its market value dropping near 3%. Musk has yet to address the reason for his postponement, causing public speculation that he could be panicking.
International Business Times has gathered comments from X about his social media behavior. Here’s one about him responding to Los Angeles politician Spencer Pratt: “Oh, he’s here on Twitter. He’s been tweeting all day. He just responded to Spencer Pratt about socialism.”
CNBC commentator Rick Santelli responded publicly, offering some business perspective. He said, “One delayed interview shouldn’t define a company’s value, but that’s how markets behave in the short term.”
Causes for SpaceX IPO’s Wall Street Tumble
The promised $1.75 trillion initial public offering suddenly shifted into a downtrend when its market share peaked at $225. Other than the xAI merger, SpaceX holds a collection of Musk’s equities. His previous investments in artificial intelligence helped it reach a combined value of $26.5 trillion, or at least that’s what was stated in the official May S-1 application.
Musk decided to purchase another AI company, Cursor, in hopes of strengthening SpaceX’s value. The acquisition cost him $60 billion, which later sank the IPO to $185 on Jun. 20. Shareholders were left 18% below the weekly high. Economic analyst Chris Murphy then predicted that the asset’s volatility would shrink the value to $92.50 per share.
And the prediction couldn’t be further from the truth. Musk’s IPO gained a short-lived recovery when it joined the Russell 1000 (FTSE Russell) on Jun. 27. A $25 billion bond briefly helped until Starlink’s Memphis discount. xAI Memphis informed customers residing in the Tennessee capital were offered half-priced discounts for their internet services, allowing monthly payment plans from $27.50 to $65.
However, these homes were located within the perimeter of the Colossus data centers. They help operate XAI’s state headquarters and are heavily criticized by the surrounding communities for consuming 280,000 homes’ worth of electricity. SpaceX’s value was then knocked down to the low $150s range. With the current market price at $145, what could it mean for the early investors?
Mergemarket analyst Samuel Kerr informed those who invested during the pre-launch period won’t make much of a return. Anyone who purchased the $135 share is safe.
Could SpaceX Survive Till 2027?
Musk’s AI takeover is going to take a nosedive in the next few months as other obstacles block his path. Back in April, Musk feuded with Sam Altman over OpenAI’s business operations after receiving non-profit donations. Altman came out victorious, but it didn’t stop the Grok CEO from trying again. He entered the latest Apple lawsuit after both AI billionaires accused each other of stealing the computer company’s secrets using two former employees.
Then on Jul. 7, the Grok Deepfake case escalated. Two more plaintiffs are joining the class action lawsuit against xAI. AI image generator, Stability AI, is the newest defendant, as more parents are growing aware of how generative software can be manipulated for child pornography. “Stability AI saw and seized upon the lucrative potential of sexually explicit content,” reported King Law.
However, even if the SpaceX IPO fails, Musk does have at least two fail safes to rely on. There’s the Tesla stock (TSLA) that holds $396 per share. Wall Street is keeping a close eye on its current uptrend in case the CEO plans to merge it with the rocket manufacturer. Experts say that Tesla could be kept separate to continue thriving through its electric vehicle sales.
Then there’s the Starlink satellites. The CEO has previously stated that his mission is to send one million SpaceX AI1s to provide astral data centers in space. The satellite provider’s main business is providing internet access, and it will soon be launching an alternative mobile service. According to sources, Starlink Mobile is in a partnership with T-Mobile and will be available for phones with LTE compatibility.
