SpaceX's stock plummeted 6.77% during intraday trading on Friday, extending its recent decline and falling further below its initial public offering price.

The sell-off was triggered by the last-second abort of the company's crucial Starship V3 Flight 13 test flight, which was automatically canceled moments before liftoff when multiple Raptor engines failed to ignite. This marked SpaceX's first major rocket test since its historic IPO, and the technical setback dampened investor confidence in the company's near-term execution capabilities.

Additional pressure came from a significant increase in short-selling activity, with approximately 29% of the company's publicly available float now sold short according to recent data. Market sentiment was also weighed down by concerns over upcoming insider lockup expirations, which could unleash a wave of selling after the company's first quarterly earnings report.