SpaceX’s shares dropped 16% on June 22, wiping out about $400 billion in market value in one of the largest single-day declines in U.S. corporate history [1, 2, 3]. The stock fell further over June 23 and 24, with losses continuing after a strong start following its June 12 initial public offering (IPO) [4, 5, 3, 6]. After the plunge, SpaceX’s market capitalization was about $2.04 trillion, falling behind Taiwan Semiconductor Manufacturing Company in global rankings [1, 2]. Some sources estimated the market cap dropped to around $1.9 trillion, reflecting slight discrepancies among analysts [1, 2, 3, 7].
The IPO was historic, priced at $135 per share and closing near $161 on its first day, June 12 [8, 5, 1]. Shares briefly surged to a peak of $176.50 on June 16, making SpaceX briefly the most valuable tech firm by market cap, surpassing Amazon and Microsoft for a short time [8, 5]. However, after June 17, the stock declined sharply, losing about 8% prior to the Juneteenth holiday [4, 5]. Market watchers like Michael O’Rourke of Jones Trading said buying enthusiasm largely exhausted in the early days of trading [1]. Matthew Unterman of S3 described the price action as normal discovery rather than a classic short squeeze [6]. Short interest remains moderate at 5%-7% of tradable shares, with ample liquidity [6].
Elon Musk’s net worth surpassed $1 trillion after the IPO, mostly tied to SpaceX and Tesla shares [8, 5]. The publicly available float stands at about 4.2% of total shares, roughly 625 million shares traded on Nasdaq [4, 6]. Rising US Treasury yields and expectations of Federal Reserve rate hikes have pressured high-valuation tech stocks including SpaceX [1, 2].
SpaceX’s AI division recorded a loss of approximately $6.4 billion in 2025, contributing to accumulated losses above $9 billion over 2025 and 2026, raising concerns over fundamentals amid ambitious AI and space investments [8, 1, 2]. Despite this, credit rating agencies have assigned investment-grade ratings to SpaceX’s debt, signaling some confidence in the company’s financial outlook [9, 10].
To support its AI expansion and repay transition loans, SpaceX announced plans to issue up to $25 billion in senior unsecured bonds across multiple maturities on June 22. The bond offering attracted strong interest with nearly $85 billion subscriptions, though final orders were around $73 billion, below average for high-grade bonds [1, 2, 9, 10]. The company reported $100.8 billion in cash and cash equivalents as of June 19, providing a substantial liquidity buffer [2, 3].
SpaceX has also signed computing and data center deals with Alphabet and AI startups like Reflection AI to generate recurring revenue from its infrastructure, aiming to diversify income streams beyond space launches [1, 2, 3, 7]. Investors remain cautious, with some stressing the need for multiyear horizons to assess returns. Nancy Tengler, CEO of Laffer Tengler Investments, said, "For some forecasts, caution is still warranted. Our investment cycles are three, five, or even ten years" [8].
The coming weeks will test whether SpaceX can stabilize its share price amid continued market volatility and deliver on its AI strategy while managing high cash burn. The bond sale closing and upcoming earnings releases will provide further signals of its financial health.
