SpaceX Stock Drops After Record-Breaking IPO Rally Cools

SpaceX, the aerospace, aviation, and artificial intelligence company founded by Elon Musk, could not sustain the rapid upward momentum it gained after its record-breaking initial public offering (IPO) on the Nasdaq exchange on June 12. The company's shares, after a strong rally observed since the first trading day, have declined over the past two trading days, drawing investor attention. This pullback is interpreted as the first significant correction following SpaceX's historic market debut.

SpaceX (SPCX) was priced at $135 per share in its IPO on June 12, 2026, raising an initial $75 billion. This figure, boosted to $85.7 billion with the exercise of overallotment options, marked the largest IPO in history. The company's shares opened at $150 on their first trading day, surged to an intraday high of $176.52, and closed at $160.95. SPCX continued its ascent in subsequent trading days, reaching a peak of $225.64 on June 16, representing a 67% increase from its IPO price. During this period, the company's market capitalization surpassed $2.75 trillion, placing it among the world's most valuable companies, and making Elon Musk the world's first trillionaire.

However, following the strong three-day rally, shares experienced their first decline on June 17, falling by approximately 5%. This downturn continued on June 18. Several factors underpin this market pullback. SpaceX's announcement of its acquisition of AI coding startup Cursor in a $60 billion all-stock deal raised concerns about share dilution. Furthermore, news of the company's plan for a $20 billion bond offering created questions among investors regarding its capital needs. The commencement of SPCX options trading on June 17 also provided an avenue for short sellers, increasing selling pressure.

In addition to these developments, concerns about the company's financial performance are also present. SpaceX reported a net loss of $4.9 billion in 2025 and a further net loss of $4.28 billion in the first quarter of 2026. These losses are largely attributed to the xAI merger; while the Starlink satellite internet service is profitable, the artificial intelligence division is consuming significant cash. Analysts point out that the company's current high valuation does not fully align with its underlying financial fundamentals.

Market experts and analysts, while maintaining optimism about SpaceX's long-term potential, anticipate short-term volatility. Key factors influencing future stock performance include Starlink's ability to maintain subscriber growth and average revenue per user (ARPU), the management of xAI's capital expenditures, and the success of Starship test flights. Moreover, the expiration of the lock-up period in December 2026, when a significant portion of shares will become tradable, is considered a potential risk. While the company's ambitious projects in space and artificial intelligence continue to attract investor interest, its steps towards financial sustainability and profitability will be closely monitored.