SpaceX stock lost 3.32% on July 29, closing at $112.55, even after the company secured a $1.6 billion contract from the US Space Force. This deal covers 18 Falcon 9 launches scheduled through 2027, reinforcing SpaceX’s dominant position in military satellite deployment.

The stock’s downward trajectory has persisted since its debut on Nasdaq. Initially priced at $135 during the IPO, SpaceX shares soared to a peak of $225.64 in mid-June but have since reversed sharply. On July 28, shares hit a record low of $107.01 and hovered below the IPO price, marking a roughly 29% drop over the last 30 days.

Investors are concerned about an upcoming share unlock around August 6, which could increase supply and add pressure to the stock. Meanwhile, SpaceX competitors are struggling. United Launch Alliance is still addressing technical issues with its Vulcan rocket, and Blue Origin is investigating a launchpad explosion that halted its New Glenn program back in May. These setbacks have widened SpaceX’s lead in Pentagon contracts, though some lawmakers remain wary of relying heavily on a single contractor.

Details of the Pentagon’s Latest Order

The US Space Force allocated $1.6 billion across two task orders under the National Security Space Launch Phase 3 Lane 1 program. This initiative competes among SpaceX, ULA, Blue Origin, and other launch providers to support military satellite missions that focus on airborne threat detection and tracking as part of the Pentagon’s Space Based Sensing and Targeting project.

This contract adds to a series of Pentagon wins for SpaceX this year, including a $6.5 billion deal announced in May. Reuters reports that SpaceX has accumulated at least $7 billion in government contracts in 2024, much linked to the Trump-era Golden Dome missile defense program valued at roughly $185 billion.

Despite fresh revenue streams from these military deals, the stock’s recent slide shows that investor mood hinges more on near-term market mechanics like the August unlock and the company’s upcoming earnings report than on contract announcements.

The stock’s decline continues as traders weigh these factors.

This material is for informational purposes and does not constitute financial advice.