SpaceX Shares Drop Below IPO Price After Massive Valuation Slide

Space Exploration Technologies Corp. experienced a sharp correction in its market valuation, dropping to approximately $2 trillion after briefly touching nearly $3 trillion following its June 12, 2026, initial public offering. The stock, trading as SPCX on the NASDAQ, reached an intraday peak of $225.64 on June 16 before falling to $145 on July 12, slipping below its $150 opening price.

While direct IPO participants saw gains of over 12% from the $135 initial offering price, investors who bought at the peak faced losses of nearly 33%. The company's valuation loss of nearly $1 trillion in less than a month stems from high spending and a lack of consistent profitability. CEO Elon Musk is prohibited from selling his shares until June 2027, though some stakeholders may sell after second-quarter results are released in early August.

To recover its valuation, the company is scaling the Starlink internet service and has requested regulatory approval for 100,000 Gen3 satellites. SpaceX is also developing the reusable Starship rocket and leveraging AI infrastructure partnerships with Anthropic, Google Cloud, and Reflection valued at up to $82 billion. Analysts indicate that reaching a $3 trillion market cap will require flawless execution across these programs and favorable macroeconomic conditions.