SpaceX Stock Plummets 50% Ahead of First Public Earnings

Shares of Space Exploration Technologies Corp. have fallen nearly 50% from a post-IPO peak of approximately $225, erasing over $1.2 trillion in market value. Following its June 2026 IPO, the stock hit multiple record lows in late July, trading between $108 and $116. The decline is driven by massive capital expenditures, including $7.72 billion spent on artificial intelligence in the first quarter, and a trailing twelve-month net loss of $9.36 billion.

Market volatility is intensifying ahead of the company's first public quarterly earnings report on August 4 and the expiration of an insider lockup period on August 6. The lockup expiry is expected to release up to 911.5 million shares, potentially tripling the public float from under 5% to over 12% and creating significant downward price pressure.

These financial headwinds contrast with technical milestones. On July 24, SpaceX successfully conducted the 13th test flight of its Starship rocket from Starbase, Texas, deploying 20 Starlink V3 satellites. While the upper stage performed a soft splashdown, the Super Heavy booster hit the Gulf of Mexico harder than planned due to a partial engine failure. CEO Elon Musk has since announced plans to attempt a tower catch of the ship during the next flight.

Elon Musk has responded to the valuation crash with humor on X, referring to himself as a "(Former) Trillionaire." Despite the sell-off, some analysts maintain an outperform rating, while others argue the valuation remains obscene given the company's lack of profitability.