SpaceX Shares Drop Below IPO Price After Starship Failure

Shares of Space Exploration Technologies Corp. fell below their $135 initial public offering price for the first time on July 16, 2026, closing at $131.11. The decline followed the scrubbing of the 13th Starship test flight at the company's Starbase facility, which was intended to deploy 20 Starlink V3 satellites. After-hours trading saw the price dip further to approximately $125.83.

The stock has plummeted 40% from its post-IPO peak of $225, with the company's market capitalization falling to $1.74 trillion from a high of $2.68 trillion. While the company reported revenue growth to $4.694 billion in its first quarterly report as a public entity, it posted an overall net loss of $4.276 billion due to massive investments in AI infrastructure and Starship development.

Investors are weighing the company's high valuation against upcoming risks, including the expiration of insider lockups in early August that could flood the market with up to 911.5 million shares. Analysts cite profit-taking and debt-funded AI spending as primary drivers of the volatility. Despite the setback, the company maintains strong performance from its Starlink division, which generated $1.188 billion in operating profit.