Why Is SpaceX Crashing Just Days After Its Dream IPO?

SpaceX shares have fallen sharply in recent trading sessions, erasing more than $600 billion in market value from the company's post-IPO peak.

The decline comes less than two weeks after the Elon Musk-led company completed a record-breaking public listing that briefly pushed its valuation close to $3 trillion. Despite the recent selloff, SpaceX remains valued at more than $2 trillion and continues to trade above its IPO price.

Several developments have coincided with the decline in the stock. Here is a look at the main factors.

Bond Offering Draws Attention

One of the most closely watched developments was SpaceX's announcement of its first investment-grade bond offering.

The company disclosed that it had $100.8 billion in cash and cash equivalents as of June 19. It also said proceeds from the bond sale would be used to repay existing borrowings and for general corporate purposes.

Bloomberg reported that SpaceX is seeking to raise at least $20 billion through the offering.

The announcement attracted attention because it came shortly after the IPO and alongside the disclosure of the company's large cash position. The company has not indicated any change to its business outlook.

Losses Remain in Focus

SpaceX continues to report strong revenue growth, but the company remains loss-making.

According to company disclosures, SpaceX reported a net loss of $4.9 billion in 2025. The company also reported a loss of $4.28 billion during the first quarter of 2026.

The losses have been linked to spending on artificial intelligence (AI) infrastructure, data centres, Starship development and other expansion initiatives.

The financial results have received increased attention following the company's public listing, which made its valuation and financial performance subject to closer scrutiny from public market investors.

Upcoming Share Unlocks Could Increase Supply

Another issue being monitored by investors is a series of expected insider share unlocks.

Only about 4.2% of SpaceX's total shares were available for public trading at the time of the IPO. The limited float was widely viewed as one factor contributing to the stock's sharp rise after listing.

Research cited by Financial Express indicated that several share unlock events are expected over the coming months, potentially allowing insiders and early investors to sell additional shares.

An increase in the number of tradable shares can affect supply-demand dynamics in the market, which is why lockup expirations are closely watched by investors.

Valuation Concerns Raised by Analysts

Bloomberg reported that KeyBanc Capital Markets initiated coverage of SpaceX with a hold-equivalent rating, saying the company remains a leader in space launch and related businesses, but that much of its long-term growth potential may already be reflected in the current valuation.

The report also cited JonesTrading chief market strategist Michael O’Rourke as saying that sellers appear to be in control of the stock after the strong IPO-driven rally, adding that most potential buyers who wanted exposure had already entered the trade.

Separately, The Economic Times reported that valuation expert Aswath Damodaran has cautioned that SpaceX’s high valuation is largely based on expectations around AI, even though its core businesses such as space launch services remain relatively niche in scale.

Damodaran noted that while the company has expanded into areas such as Starlink and AI-related initiatives following its integration with xAI, these segments are still largely driven by future expectations rather than established large-scale profitability.

According to his assessment, the AI narrative has become central to the company’s valuation, with market expectations pushing the stock into the trillion-dollar range despite uncertainty over how quickly those businesses will translate into earnings.

He also warned that high growth alone does not necessarily translate into value creation, pointing out that growth requiring heavy reinvestment and delivering lower margins can, in some cases, reduce overall value rather than increase it.

What Happens Next?

Several developments are likely to remain in focus in the coming months, including the bond offering, future earnings reports, AI-related investments and planned share unlocks.

SpaceX has also continued to expand its AI business. The company recently announced a multibillion-dollar computing agreement with Reflection AI, an AI startup that will use SpaceX's computing infrastructure.

While the stock has declined from its post-IPO highs, SpaceX remains one of the world's most valuable publicly traded companies.