Why SpaceX Stock Is Sinking Today
Key Points
Starlink is currently the money-maker for the rocket company.
Ukraine officials claimed SpaceX initiated new restrictions on its Starlink use.
Musk's politics can be divisive.
Elon Musk has a history of expressing views that can alienate some of the customer base for his companies. That appears to have occurred again after last night's social media posts.
That has shares of Space Exploration Technologies (NASDAQ:SPCX) sinking today. SpaceX stock recovered from early lows, but was still down by 3.5% as of 10:50 a.m. ET.
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Image source: The White House.
Officials in Ukraine said that its use of the Starlink satellite internet service was being restricted, impeding its defenses in its war with Russia. Ukraine uses both Starlink and Starshield to support its defense and military initiatives against Russia. Starlink is the commercial service, while Starshield is a separate, military-grade platform.
After reporting delayed service, SpaceX CEO Elon Musk chimed in on social media, pointing out to followers that the Pentagon, and, ultimately, President Trump, controlled the military service. He also criticized Ukrainian President Volodymyr Zelensky, posting "Time for Zelensky to go."
Immersing himself in political debates could alienate Starlink's customer base. Starlink has over 10,000 satellites in orbit, serving 12 million customers in 167 countries as of the end of Q2. It is the only SpaceX segment that is profitable, accounting for 60% of revenue in the first six months of 2026.
SpaceX investors don't want to see politics get in the way of a profitable business. In reality, though, the online comments are most likely just noise, making any meaningful drop in SpaceX shares a potentially good opportunity for long-term investors.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.