SpaceX deploys first V3 Starlink satellites but suffers booster failure

SpaceX's 13th Starship test flight on July 24, 2026, successfully deployed the first V3 Starlink satellites but ended with a mixed result. While the Starship upper stage survived reentry, the Super Heavy booster failed for a second consecutive time, exploding during a simulated landing. The flight, the first since SpaceX's historic IPO, highlights the company's 'fly, fail, fix' approach but underscores the challenge of achieving full reusability, which is critical to its Starlink business model.

Starship V3 test flight

• ▪The Starship upper stage survived reentry and performed a simulated landing in the Indian Ocean, where it remained floating
• ▪On July 24, 2026, SpaceX conducted the 13th test flight of its prototype Starship rocket
• ▪A previous launch attempt a week prior was aborted after ignition due to multiple rocket engine failures, leading SpaceX to replace six engines

Super Heavy booster failure

• ▪This was the second consecutive Super Heavy booster failure on a Starship V3 flight, following a similar issue in May 2026
• ▪The Super Heavy booster failed during a simulated landing in the Gulf of Mexico, exploding on impact with the water
• ▪The booster's failure was caused by its inability to properly ignite all engines required for its landing burn

SpaceX stock performance

• ▪Following the booster failure, SpaceX shares fell another 2% in after-hours trading before recovering some losses
• ▪Since its IPO, SpaceX's stock has dropped from a peak of over $200 per share to $115 at the close of trading on July 24, 2026
• ▪This was the first Starship launch since SpaceX went public in June 2026 in what was the largest IPO in history

Starlink V3 satellite deployment

• ▪The deployed Starlink V3 satellites burned up in the atmosphere about 20 minutes after deployment as Starship cannot yet reach a stable orbit
• ▪The test flight successfully deployed the first third-generation (V3) Starlink satellites
• ▪SpaceX successfully communicated with all the deployed satellites before they were destroyed, marking a step forward for the program

Reusability economics

• ▪According to SpaceX's S-1 filing, without a fully-reusable Starship, progress on the Starlink network would be at a "slower pace and higher cost."
• ▪SpaceX states that launching 60 new V3 satellites on Starship represents a potential twenty-fold increase in deployed downlink capacity compared to a Falcon 9 launch