SpaceX Trades 20% Below IPO Price, $1.2 Trillion in Market Cap Erased
Short sellers increased bearish wagers as analysts split over SpaceX’s valuation and investors weighed Tesla’s negative free cash flow.
- SpaceX shares have plummeted, shedding more than $1.2 trillion in market value since peaking at $2.64 trillion on June 16, 2026, leaving the company valued at $1.44 trillion.
- Lofty valuations have drawn a swarm of short-selling investors over the past month, with roughly 30 per cent of available shares sold short, according to data from S3 Partners.
- CEO Elon Musk publicly dismissed bearish bets on X last week, writing that the "survival probability" for those maintaining significant short positions is "very low." The stock selloff accelerates despite a successful Starship test.
- Investors are now bracing for potential selling pressure as more than 900 million shares become available for trading on August 6 under the staggered lock-up arrangement.
- Despite the downturn, SpaceX remains more valuable than Tesla, Berkshire Hathaway , and Eli Lilly ; however, CFRA analysts recently recommended selling, citing concerns that expectations have become overly optimistic.
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The Economic Times
Times of IndiaSpaceX trades 20% below IPO price, $1.2 trillion in market cap erased
SpaceX shares have dropped twenty percent since their debut last month. Investors are avoiding riskier technology firms and AI ecosystem concerns are rising. The company has lost over one trillion dollars in market value from its peak. Geopolitical factors and spending power are impacting valuations across the industry. Upcoming lock-up expirations could further affect the stock's performance in coming months.
Chip Selloff, SpaceX, and Apple's $5 Trillion Milestone | Bloomberg Tech 7/28/2026
Bloomberg’s Ed Ludlow breaks down the selloff in chip stocks dragging the Nasdaq 100 near correction territory, after signs of progress in China's chipmaking add to worries about the sustainability of the AI spending boom. Plus, SpaceX shares erase a fifth of their value since the record-setting debut of Musk's company, as investors start to avoid riskier tech firms. And, Apple briefly becomes just the second company ever to achieve a $5 trillio…
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