SpaceX Stock Drops 50% After Record-Breaking Initial Public Offering

Space Exploration Technologies Corp. conducted the largest initial public offering in history on June 12, 2026. After an initial trading jump of 19%, the stock entered a period of extreme volatility, eventually falling more than 50% from its post-IPO peak to close at $115.26 on July 22. This decline erased approximately $1.4 trillion in market value.

Several factors contributed to the crash, including an initial valuation driven by hype and the aborted Starship Flight 13 launch attempt on July 16. Additionally, the company agreed to a $60 billion all-stock acquisition of Anysphere, the firm behind Cursor. These events occurred amidst a broader sell-off in space-related equities.

Investors are now focused on the company's first public quarterly earnings report on August 4 and the subsequent eligibility of 911.5 million shares for sale on August 6. While corporate investors like Alphabet Inc. and Tesla reported gains tied to their SpaceX stakes, the company's long-term recovery depends on the success of the Starmind AI satellite initiative and the ability to translate launch networks into durable profits.