Elon Musk dismissed a Wall Street Journal report that SpaceX built a prototype AI device, calling it “utterly false”. SpaceX stock (SPCX) fell about 7% on Wednesday as investors weighed the conflicting accounts.

The report said the company privately showed investors a handset-like device before its public listing. The denial gave traders little clarity on a stock already prone to sharp swings.

Musk Rejects the AI Device Report

The Wall Street Journal reported that SpaceX showed investors a device slimmer than an iPhone before its June listing. The prototype reportedly ran a proprietary operating system on a Qualcomm (QCOM) Snapdragon chipset.

It also drew on technology from Musk’s xAI unit, now folded into SpaceX. Sources described the project as early-stage, with a design that could still change. Elon Musk has however refuted the claims.

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No filing, image, or product demonstration has backed the report, and SpaceX has stayed publicly silent. The denial echoes February, when Musk rejected a Reuters report that SpaceX was building a Starlink phone.

Still, the report fits how SpaceX sells itself. The company spans rockets, satellite internet, and AI. Its broader AI push, though, has favored data centers and satellites over consumer gadgets.

SpaceX Stock Extends Its Post-IPO Slide

SPCX fell to $157.88, down about 7% from Tuesday’s close of $170.86. As of this writing, it was trading for $158.33, with the drop leaving the stock roughly 30% below its June peak of $225.64. It has deepened a retreat that began soon after the stock’s record IPO debut.

SpaceX priced that June offering at $135 a share, raising about $75 billion. That gave it a valuation near $2.09 trillion.

Qualcomm shares edged higher as some traders read the report as a new chip partnership. That split reaction captured the market’s uncertainty. SpaceX now trades near a make-or-break support level that analysts have flagged for weeks.

The muted company response leaves investors waiting for clarification. Musk’s denials have not always ended speculation. Continued silence from SpaceX could keep pressure on SPCX in the coming sessions.

Source: BeInCrypto