Elon Musk has a familiar routine when it comes to SpaceX phone rumors: deny, deny, deny. On July 1, 2026, he did it again, publicly rejecting a Wall Street Journal report that claimed SpaceX had shown investors a prototype of a handheld AI device ahead of its record-breaking IPO.
Musk called the report “utterly false,” insisting no such prototype had been demonstrated. The market, meanwhile, decided to react first and sort out the truth later. SpaceX shares fell around 7% to approximately $158-$159, a notable slide from their peak near $225 following the company’s June 2026 IPO.
What the WSJ reported
The Journal’s article described an alleged device that was reportedly slimmer than an iPhone, running a proprietary operating system, and powered by AI technology from xAI, the artificial intelligence company that SpaceX acquired earlier in 2026.
On the hardware side, the report cited Qualcomm’s Snapdragon technology as a component of the alleged device. Qualcomm shares responded accordingly, climbing about 3% on the news.
