KEY POINTS
- SpaceX (NASDAQ:SPCX) fell about 7% to around US$158 on Wednesday 1 July 2026.
- The drop followed a Wall Street Journal report of a secret AI phone, which Elon Musk called "utterly false."
- The stock now trades about 30% below its June peak of around US$226.
- The bigger events for investors are its planned Nasdaq-100 entry and a new bullish analyst target.
SpaceX (NASDAQ:SPCX) fell about 7% to around US$158 on Wednesday, 1 July 2026, and the reason was unusual. The stock did not drop on bad news, but on a report the company denied. Elon Musk dismissed a Wall Street Journal story claiming SpaceX had shown investors a secret AI phone, calling it “utterly false.” So why did a denied report knock 7% off the stock? Here is our read.
What Did the Report Actually Say?
According to the Wall Street Journal, SpaceX privately showed investors a prototype of an AI-powered handset before its recent stock market debut. The device was described as slimmer than an iPhone, running its own software using xAI technology and Qualcomm chips.
It helps to know that xAI, Musk’s artificial intelligence company, was folded into SpaceX earlier this year, which is why an AI phone rumour moved SpaceX rather than Tesla or X.
Musk shot the story down with two words on X: “utterly false.” It is worth stressing that nothing here is confirmed. The report itself said the project was early-stage and might never be built, and Musk denies it exists at all. For now, the AI phone is unproven either way.
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Why Did the Stock Fall on a Denial?
Here is the key point: the fall was not really about the phone. SpaceX had already dropped around 30% from its June peak of about US$226, so the stock was fragile and jumpy after a red-hot debut. The confusing report simply gave nervous investors another reason to sell.
The mixed signals did not help. A detailed report from a major newspaper, flatly denied by the CEO, leaves investors unsure what to believe, and markets dislike uncertainty.
The slide was dramatic enough that it wiped more than US$50 billion off Musk’s own net worth in a single day, dropping it to around US$994 billion and briefly ending his run as a trillionaire, a reminder of how closely his fortune tracks this one volatile stock.
The Investor’s Takeaway: Buy the Dip or Stay Away?
Our take: look past the phone noise and focus on what actually moves the stock. Two real events matter far more. SpaceX is set to join the Nasdaq-100 index on 7 July, which JPMorgan estimates could pull in around US$4.3 billion of buying from funds that track the index. On top of that, Wedbush just started coverage with a bullish US$190 price target.
Those are genuine, near-term supports. But this remains a highly volatile stock whose valuation rests heavily on big future promises rather than today’s profits. For risk-tolerant investors, the pullback and the index inclusion could offer an opening.
For everyone else, a stock that can swing 7% on an unconfirmed rumour is one to watch carefully rather than chase. The phone may or may not be real, but the volatility certainly is.
