SpaceX stock hit an all-time low of $132.75 on July 15, breaching its $135 IPO price as a combination of lockup expiration overhang and a broader AI sector repricing weighed on the shares. The stock has declined significantly from its post-IPO peak, with the company losing approximately $1 trillion in market value since its high.
The decline below the IPO price represents a significant psychological milestone for investors who participated in one of the most anticipated public listings in recent history. SpaceX went public with enormous fanfare, with the stock initially surging as retail and institutional investors rushed to gain exposure to Elon Musk’s space venture.
Several factors have contributed to the decline. A lockup expiration allowed early investors and employees to sell shares that had been restricted since the IPO, creating supply overhang in the market. Additionally, a broader repricing of AI and technology stocks has affected SpaceX, as investors reassess valuations across the sector.
The postponement of the Starship Flight 13 test due to engine issues added to the negative sentiment. The Starship programme is critical to SpaceX’s long-term revenue projections, and any delays in its development timeline affect the company’s valuation.
Despite the stock’s decline, some analysts maintain a price target of $242 for SPCX, suggesting significant upside from current levels. The company continues to generate revenue from its Starlink satellite internet service and commercial launch contracts, which provide a foundation for its valuation even as the stock faces near-term headwinds.
This article was adapted from The Tokenist. Read the original here.
