SpaceX Shares Slide as Investors Eye Tesla Earnings and Starship Test

The stock is currently testing the lower boundary of a descending channel on the one-hour chart, a pattern that has dictated the price decline from its June peak of over $225. Technical indicators reflect continued weakness, with the Chaikin Money Flow at minus 0.13 and the Average Directional Index at 31.72, suggesting the current downward momentum remains firmly entrenched. Investors are watching the $118 level as a critical support threshold; a failure to hold this mark could invite further selling pressure toward the psychological $100 floor.

Despite the sell-off, institutional interest remains visible. Cathie Wood’s ARK Invest recently added $18 million in SpaceX shares to its portfolio, signaling confidence despite the stock trading roughly 47% below its post-IPO highs. Retail demand also persists, with data indicating that individual traders poured approximately $320 million into the stock during July alone.

Catalysts for a potential reversal include developments beyond the company's core space operations. Speculation regarding a strategic alignment between Tesla and SpaceX has gained traction among analysts, with JPMorgan noting that shared leadership under Elon Musk and overlapping interests in robotics and energy could foster deeper cooperation. Furthermore, SpaceX is reportedly in negotiations with the U.S. Department of Defense to provide data-center capacity for AI operations, a deal potentially worth billions. These prospects, combined with the July 23 Starship test, serve as the primary variables that could break the stock's current technical confinement.