SpaceX shares fell below their $135 IPO price for the first time on Jul. 15, extending a reversal that has erased about one-third of the stock’s peak value.
Key Points:
- SpaceX traded as low as $132.28 before closing at $135.27, slightly above its IPO price.
- The company’s valuation has fallen to about $1.78 trillion from more than $2.6 trillion.
- Analysts cited profit-taking, valuation concerns and potential selling by early shareholders.
SpaceX Stock Slide
The stock dropped below the offering price during its fourth consecutive losing session, according to Reuters, just over a month after the company completed the largest initial public offering on record. Shares fell as much as 2.4% intraday before recovering, but they remained roughly 34% below their Jun. peak.
The decline erased the gains for investors who bought at $135, while buyers who entered during the initial rally faced deeper losses after SpaceX briefly reached a valuation above $2.6 trillion.
Daniela Hathorn, senior market analyst at Capital.com, attributed the retreat to “profit-taking, valuation reassessment and the unwinding of extremely bullish positioning.” Justus Parmar, CEO of investor Fortuna Investments, said some early holders may be seeking liquidity, adding pressure to the shares.
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SpaceX Valuation Risks
The selloff also reflects concerns about debt-financed technology spending and the effect of possible Federal Reserve rate increases on richly valued companies. SpaceX raised $25 billion through the bond market last month to support infrastructure development, while investors continue to debate when those investments will produce returns.
Its rapid entry into the Nasdaq-100 failed to stabilize the stock, even though passive funds tracking the index had to buy shares under a revised rule allowing qualifying listings to enter after 15 trading days.
SpaceX reported a $4.94 billion net loss in 2025 and a $4.28 billion loss in the first quarter of 2026, leaving its valuation dependent on expectations for future growth.
Investors are now watching the 13th Starship test flight and the company’s first public earnings report, expected in early August.
The stock’s reversal followed an unusually fast rise after its Jun. 12 debut, when limited public supply helped push the price from $135 to a peak above $225. The coming expiration of initial lockup restrictions could increase the available shares and test whether demand can absorb selling by employees and early investors.
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