SpaceX shares plunge 20% below IPO, lose $1.2 trillion

Shares of SpaceX have fallen sharply in recent weeks, erasing more than $1.2 trillion in market value since a peak in mid-June and trading below their initial public offering price. The decline reflects growing investor skepticism over the company's lofty valuation and broader concerns about the enormous capital expenditures required to power artificial intelligence and space exploration ambitions.

The stock closed at $113.50 on Monday, July 27, marking its 13th decline in 16 trading sessions. This represents a drop of roughly 20% from its IPO price of $135 and a more than 47% plunge from its closing high of $225.64 on June 16. At its recent valuation of approximately $1.45 trillion, the company's market capitalization has shed an amount nearly equivalent to the entire value of Tesla, Elon Musk's other major publicly traded company, which has also faced significant selling pressure.

Analysts attribute the sell-off to a combination of factors. SpaceX's debut came with a record-setting valuation that many investors now question relative to its current financial performance. The company reported a GAAP net loss of $4.94 billion on $18.7 billion in revenue for 2025, with capital...