SpaceX has erased approximately $1.48 trillion in market value over the past 37 days, with shares of Elon Musk’s rocket and satellite company falling to a new all-time low.
The stock has dropped well below the $135 price set during SpaceX’s initial public offering, turning what began as one of the most successful market debuts in history into a significant test of investor confidence.
SpaceX completed its IPO on June 12, raising approximately $75 billion through the sale of about 555.6 million shares. The offering valued the company at roughly $1.77 trillion, making it the largest public listing ever. Shares opened their first trading session at $150 and closed near $161.
Investor enthusiasm initially pushed the stock above $225, briefly lifting SpaceX’s valuation beyond $2.6 trillion. However, the rally quickly reversed, and the shares have since lost nearly half their value from that peak.
SpaceX Falls Below Its IPO Price
Dropping beneath $135 represented an important psychological turning point because it placed investors who bought directly into the IPO at a loss.
Shares initially slipped below the offering price in mid-July, briefly touching $132.28 before recovering to close at $135.27. The decline subsequently accelerated, pushing the stock to successive record lows.
The selloff has been attributed to a combination of profit-taking, concerns about SpaceX’s elevated valuation and growing expectations that additional shares could soon enter the market.
A large post-IPO lock-up expiration scheduled for early August may allow employees and early investors to sell hundreds of millions of shares. The prospect of increased supply has contributed to bearish sentiment, while short interest has also risen sharply.
Starship Delays Add to Investor Concerns
Operational uncertainty has added further pressure. SpaceX recently postponed a highly anticipated Starship test after identifying engine problems, raising fresh questions about the development timeline for a vehicle central to the company’s long-term plans.
Starship is expected to support larger Starlink deployments, NASA’s Artemis lunar program and SpaceX’s broader ambitions in orbital infrastructure. Any prolonged delays could therefore affect several of the growth narratives used to justify the company’s premium valuation.
Investors are also awaiting SpaceX’s first earnings report as a publicly traded company. The company generated approximately $18.67 billion in revenue in 2025, but recorded a net loss of about $4.94 billion, increasing scrutiny of the gap between its financial performance and market valuation.
Despite the collapse, many Wall Street analysts remain optimistic about SpaceX’s longer-term prospects, citing its reusable launch technology, Starlink satellite network and potential expansion into space-based AI infrastructure.
For now, however, the loss of approximately $1.48 trillion in just over five weeks illustrates how rapidly investor enthusiasm can reverse after a blockbuster IPO. The stock’s fall below its offering price has transformed SpaceX’s market debut from a record-setting success into a broader confidence test for one of the world’s most valuable technology companies.
