SpaceX Shares Dip Below IPO Price Amid Massive Growth

Shares of Space Exploration Technologies Corp. fell below their $135 initial public offering price on August 20, 2026. The decline followed the release of approximately 319 million shares held by early investors and employees as part of a staggered lockup schedule. This volatility comes after a larger 911.5 million-share unlock on August 6, with further releases expected in November and December. CEO Elon Musk's 6.42 billion shares remain restricted until June 2027.

Despite stock fluctuations, the company reported strong financial growth for the second quarter of 2026, with revenue reaching $7.8 billion, a 92% year-over-year increase. This growth was fueled by a 66% rise in Starlink connectivity sales and a surge in AI business revenue to $2.56 billion, supported by agreements with Anthropic and Google Cloud. Management projects an annualized revenue run rate of $100 billion by the end of 2026 and $1 trillion by 2030, though heavy AI infrastructure spending has impacted the bottom line.

SpaceX is aggressively expanding its AI footprint, recently completing a $60 billion acquisition of the AI coding company Cursor. The company also received an investment of approximately $21 billion from Nvidia. However, the firm faces new orbital competition after the Chinese startup LandSpace successfully landed the first stage of its Zhuque-3 booster on land. Investors also remain cautious regarding a potential merger with Tesla Inc., which could dilute share value.