SpaceX Loses More Than $1 Trillion in Market Value as Investor Optimism Begins to Fade.

SpaceX shares briefly fell below their IPO price on Wednesday, marking a sharp reversal from the excitement that followed the company’s record listing in June. The stock dropped to $132.28 before recovering to close at $135.27, just above the $135 offer price and far below its post listing high of $225.64. The decline has erased more than $1 trillion from SpaceX’s market value, reducing its valuation from above $2.6 trillion to about $1.78 trillion.

The reversal reflects more than fading excitement after the listing. Investors are taking a closer look at a company that lost $4.9 billion last year while spending heavily on rockets, satellite communications and artificial intelligence.
SpaceX also raised about $25 billion through the bond market in June to help finance those ambitions. Since then, the price of its bonds has fallen sharply, alongside the decline in its shares. The weakness across both markets suggests investors are questioning whether the company’s costly projects will generate sufficient returns, particularly at a time when concerns about higher US interest rates and heavy AI spending are weighing on technology companies.

Its fast track entry into the Nasdaq 100, an index of 100 of the largest non-financial companies listed on the Nasdaq exchange failed to support the share price. Inclusion normally creates automatic demand from funds that track the index, but SpaceX shares have fallen about 13% since joining the benchmark.

The next test will come when SpaceX reports its first quarterly results as a listed company in August. Investors will be looking for evidence that the company’s financial performance can support the valuation attached to its future ambitions. After the results are released, the first phase of the IPO lock up, a period when insiders, including employees and early investors, are restricted from selling their shares will expire, allowing eligible shareholders to sell part of their holdings and potentially adding pressure on the stock. Investors will also be watching the next Starship tests, since the rocket’s development is central to SpaceX’s plans to reduce launch costs and pursue projects ranging from lunar missions to orbital data centres.