Why did SpaceX shares fall?

SpaceX shares fell about 7% after Elon Musk denied a report that the company had shown investors a prototype artificial intelligence device before its public listing. Musk described the report as "utterly false."

What did Elon Musk say about the reported AI device?

Elon Musk rejected the report, calling it "utterly false." Beyond Musk's social media post, SpaceX did not issue an official statement or provide further details.

How has SpaceX stock performed since its IPO?

SpaceX traded around US$158.63 after the decline, about 30% below its June peak of US$225.64. The company debuted at US$135 per share in an initial public offering that valued it at approximately US$2.09 trillion.

Has Elon Musk previously denied reports about SpaceX products?

Yes. Earlier this year, Elon Musk also rejected reports that SpaceX was developing a Starlink smartphone. The latest denial follows a similar pattern of publicly disputing media reports about potential consumer hardware.

Image for illustrative purposes only. Not a real photo.

SpaceX falls after Musk rejects AI report

Q: What did the Wall Street Journal report about SpaceX?

The Wall Street Journal reported that SpaceX privately showed investors a handset-like prototype powered by a Qualcomm Snapdragon processor and technology from xAI before its June listing. The company has not publicly confirmed those claims.

Written by Liezl GambePublished Jul 2, 2026, 3:12 AM

SpaceX shares fell about 7% after Elon Musk denied a report that the company had shown investors a prototype artificial intelligence device before its public listing.
Musk described the report as "utterly false", while the company did not issue a public statement addressing the claims.
The conflicting accounts added to uncertainty surrounding SpaceX shares, which remain about 30% below their June peak.

SpaceX shares fell about 7% to US$158.63 after Chief Executive Officer Elon Musk rejected a report that the company had developed and demonstrated a prototype artificial intelligence device to investors.

The Wall Street Journal reported that SpaceX had privately shown a handset-like prototype powered by a Qualcomm Snapdragon processor and technology from xAI before its June public listing, but Musk dismissed the report on social media.

“Utterly false,” said SpaceX Chief Executive Officer Elon Musk.

SpaceX did not publicly comment beyond Musk's post, and no regulatory filings, product demonstrations or official images have been released to support the reported device, while Qualcomm shares edged higher during trading.

Following the decline, SpaceX shares traded about 30% below their June peak of US$225.64 after debuting at US$135 in an initial public offering that valued the company at about US$2.09 trillion.

Musk previously rejected reports in February that SpaceX was developing a Starlink smartphone, reflecting the company's history of publicly disputing media reports about potential consumer hardware.

Investors are likely to remain focused on whether SpaceX provides further clarification, as continued uncertainty around reported product development could contribute to ongoing share price volatility.