SpaceX Shares Extend Losing Streak for Third Day, Erase Over $600 Billion in Market Value After Post-IPO Peak

Mumbai, June 23: SpaceX share price fell for a third consecutive session on Monday, deepening a sharp post-listing correction that has wiped out more than $600 billion in market value from recent highs.  

Shares fell after the Elon Musk-led company announced plans to issue investment-grade bonds for the first time. The move is part of what is expected to be a large-scale borrowing programme aimed at funding its expanding artificial intelligence ambitions and related long-term investments.  

The stock declined 16% on Monday to close at $154.60, its lowest level since the company’s first trading session. The latest drop extended its three-day decline to 23%. Following the selloff, the company’s market capitalisation now stands just above $2 trillion. 

The sustained selloff has pulled SpaceX well below its post-IPO peak, though the stock still trades significantly above its issue price following its blockbuster listing earlier this month. 

The correction follows an explosive debut that briefly pushed SpaceX into the ranks of the world’s most valuable companies, driven by strong investor appetite for high-growth space and technology names. SpaceX listed on the Nasdaq on June 12 after raising $85.7 billion through its initial public offering, marking one of the largest IPOs in history and briefly positioning the company among the world’s most valuable firms. 

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Profit Booking and Valuation Concerns Weigh 

Sentiment has shifted rapidly as investors reassess stretched valuations after the initial rally. Market participants say the early surge was driven largely by momentum buying and scarcity-driven demand, which has now given way to profit booking and repositioning. 

The graph above shows movement over the past five sessions with the slide accelerating over the last three. Source: Nasdaq

Concerns over long-term profitability timelines have also added pressure, with SpaceX’s heavy capital expenditure cycle under scrutiny. Investors are closely evaluating how quickly the company can convert its ambitious expansion plans—spanning satellite internet, reusable rockets and artificial intelligence infrastructure—into stable and predictable earnings. 

The volatility reflects a broader pattern often seen in high-profile IPOs, where early enthusiasm is followed by sharp corrections as valuations normalise and lock-in periods begin to expire. 

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Funding Plans Add to Market Uncertainty 

Additional pressure has come from growing attention on SpaceX’s financing requirements. The conglomerate is planning to raise at least $20 billion through its first bond issuance, Bloomberg had reported last week. 

While such funding plans are not unusual for capital-intensive technology firms, investors appear cautious about the scale of spending required to sustain SpaceX’s long-term growth roadmap. This has contributed to heightened volatility in trading sessions. 

Volatility Marks Early Trading Phase 

SpaceX’s listing on June 12 was one of the most high-profile IPOs in recent years, initially triggering a strong rally that rapidly inflated its valuation to multi-trillion-dollar levels. However, the momentum has reversed just as quickly, with the stock giving up a significant portion of its early gains within days. 

Despite the correction, SpaceX remains one of the most valuable publicly traded technology companies, underpinned by its leadership in satellite broadband through Starlink, reusable launch systems, and expanding ambitions in advanced technology domains. 

Outlook Hinges on Execution 

Going forward, analysts expect continued volatility as the market shifts from momentum-driven trading to fundamentals-based pricing. Key focus areas include growth in Starlink revenues, launch cadence improvements, and clarity on AI-linked investments. 

For now, SpaceX remains caught between strong long-term structural optimism and near-term valuation recalibration, leaving the stock sensitive to both sentiment swings and funding-related headlines. 

Source: Nasdaq