Musk's "Utterly False" Two-Word Reply Sends SpaceX Shares Sliding 7% 📉

Elon Musk publicly rejected a Wall Street Journal report claiming SpaceX built a prototype AI device, calling the story "utterly false" in a post on X that has since been deleted. The two-word denial triggered a roughly 7% drop in privately traded SpaceX shares (SPCX) on Wednesday, with the stock falling to $157.88 from Tuesday's close of $170.86. As of the latest trading, SPCX was at $158.33, extending a post-IPO slide that has left the stock about 30% below its June peak of $225.64.

The WSJ report said SpaceX privately showed investors a device slimmer than an iPhone before its June public listing. According to the outlet, the prototype ran a proprietary operating system on a Qualcomm (QCOM) Snapdragon chipset and drew on technology from Musk's xAI unit, now folded into SpaceX. Sources described the project as early-stage, with a design that could still change, and no filing, image, or product demonstration has backed the report. SpaceX has stayed publicly silent on the matter, leaving traders to weigh Musk's denial against the original reporting.

The denial echoes February, when Musk rejected a Reuters report that SpaceX was developing a Starlink phone, and it did little to settle uncertainty around a stock already known for sharp swings. SpaceX priced its June offering at $135 a share, raising about $75 billion at a valuation near $2.09 trillion. Qualcomm shares edged higher as some traders read the WSJ report as signaling a new chip partnership, a split reaction that captured the broader market's uncertainty. The muted company response leaves investors waiting for clarification, and continued silence from SpaceX could keep pressure on SPCX in the sessions ahead.