Key Points
- Elon Musk dismissed Wall Street Journal claims about a SpaceX AI smartphone as “utterly false” on X
- Shares of SPCX declined 7.8% Wednesday following the CEO’s public denial
- The Journal’s article described a device with custom software, xAI integration, and Qualcomm Snapdragon processors
- SPCX shares have surrendered nearly all post-IPO momentum and sit 2.1% below listing price
- Wall Street analysts maintain a Moderate Buy stance with a consensus target of $216.83, suggesting 37.6% potential gains
Shares of SpaceX (SPCX) tumbled 7.8% during Wednesday’s session after CEO Elon Musk publicly rejected a Wall Street Journal article that claimed the aerospace company had showcased an AI-powered smartphone prototype to potential investors before going public.
Space Exploration Technologies Corp., SPCX
Musk’s rebuttal on X was brief but definitive: “Utterly false.” The billionaire entrepreneur offered no additional context or clarification.
According to the Journal’s report, which cited anonymous sources with knowledge of the situation, the alleged prototype operated on custom-built software, featured artificial intelligence capabilities from xAI, and utilized Qualcomm’s Snapdragon chipsets. The story temporarily boosted QCOM shares before Musk’s denial sent them down 1.55%.
The Journal characterized the purported device as having a sleeker design than Apple’s iPhone. The publication also acknowledged that the initiative remained in preliminary phases and might ultimately be abandoned.
This isn’t the first occasion rumors of a SpaceX smartphone have surfaced. Reuters disclosed in February that the company was investigating a mobile device linked to its Starlink satellite infrastructure. Musk rejected those claims as well.
Earlier in January, however, Musk had expressed slightly more openness, stating that a Starlink-connected phone was “not out of the question at some point” — though he emphasized it would differ substantially from conventional smartphones.
SpaceX’s Expanding AI Ambitions
The smartphone speculation exists within a broader strategic context. SpaceX has committed substantial resources toward expansion far beyond rocket launches and Starlink connectivity. The organization is developing AI infrastructure, incorporating xAI’s Grok artificial intelligence throughout its operations, and investigating orbital data processing facilities.
The apparent objective is establishing SpaceX as a formidable competitor in artificial intelligence — transcending its identity as merely a spacecraft manufacturer.
Reuters has additionally disclosed that SpaceX is examining opportunities to launch its own wireless network, with ongoing discussions with Charter Communications regarding utilization of terrestrial infrastructure for cellular traffic. The company maintains an existing direct-to-cell partnership with T-Mobile through Starlink.
Current Stock Performance
SPCX has experienced challenging trading recently. Shares currently trade 2.1% beneath the IPO listing price, having relinquished the majority of initial post-offering momentum.
According to TipRanks, SPCX carries a Moderate Buy consensus assessment derived from four Buy recommendations, three Hold ratings, and one Sell opinion. The mean price objective stands at $216.83, implying potential appreciation of 37.6% from present levels.
Qualcomm declined 1.55% following the news cycle. Both SpaceX and Qualcomm refused to provide statements to Reuters.
Microsoft introduced its own AI-enhanced wearable device for enterprise users last month, also incorporating Qualcomm wearable processors — highlighting the increasingly competitive landscape for AI-enabled hardware.
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