Why SpaceX Stock Dropped on Thursday

SpaceX shares fell 9.1% on October 22, 2026, due to concerns over massive capital expenditures needed for AI expansion and uncertainty surrounding potential merger talks with Tesla. The company reported $16 billion in capex with projections of $35-40 billion in Q4, resulting in negative free cash flow. Additionally, Reuters reported that some involved in Tesla merger discussions worry that Musk's public endorsement could trigger unwanted scrutiny and delays.