When Elon Musk’s SpaceX IPO finally launched, it felt like the sky was the limit. In its blockbuster market debut, shares peaked in the $220s per share. SpaceX was set to become the world’s fifth-largest company by market value, extending a blistering rally after its record-breaking IPO.
However, SpaceX’s shares began a steady decline this week after breaking its three-day winning streak in the early session. Soon, it wiped out most of those initial profits. Losses deepened further when broader markets fell following the Federal Reserve decision to leave interest rates unchanged.
SpaceX IPO Key Details
SpaceX went public last Friday. Its shares opened at $150 after the company priced them at $135. The stock increased over 19% on its first day of trading.
Vanda Research highlighted that SpaceX has reached the first position as the most-bought stock by retail investors since its public debut last Friday. The SpaceX IPO emerged as one of the largest and most closely watched market debuts. The company is known for giving a new direction to the spaceflight economy and has created a dominant position in global launches. It has extended connectivity to places that were beyond the reach of traditional infrastructure. On Thursdays, while the major indexes rebounded, SpaceX continued to slide.
As reported by Bloomberg on Thursday, the bankers of the company are expected to hold investor calls next week for a potential bond deal of around $20 billion. With this, SpaceX’s first investment-grade US dollar bond will be issued. The main purpose is refinancing a bridge loan maturing in 2027.
The Notable Rise and Sudden Decline: Key Reasons
SpaceX shares rose for three consecutive days. It closed at $201.80 on Tuesday, but then it slipped back to $185. Now, it is continuously falling. The sudden decline in SpaceX stock reflects a reversal from the recent buying frenzy. It also raises questions about whether that momentum can justify a valuation that high for three consecutive days.
People who are fans of Elon Musk and admire his endeavors believe that SpaceX is poised to revolutionize the world; that’s why its stock rocketed as soon as it entered the market. But many experts state that its stock reaching around $225, up 67%, from its IPO price, is an example of old-fashioned supply and demand. They already mentioned that as employees and early investors are allowed to sell shares in the coming months, SpaceX shares should decline a lot, as they get many other hot IPOs. The ongoing reduction in SpaceX’s price should not come as a shock to people.
Since its first trading day on June 12, SpaceX stock has been on fire. Investors expected CEO Musk to repeat or exceed his success running electric-vehicle maker Tesla.
Unlike other business ventures known as the world’s most valuable businesses, SpaceX is going through continuous losses; it has had to let go of billions of dollars a year. Further, Musk’s decision to merge SpaceX with his AI startup xAI has saddled it with even more losses. Overall, buying shares and making an investment in SpaceX is either a vote of confidence in Musk’s vision or a risky get-rich-quick formula.
In many media reports, SpaceX stock was called Elon Musk. People already mentioned that this company is going to witness losses for many years, and it does not deserve such a high valuation on its own. The company is getting so much response because it is run by Musk. Even analysts who hold an optimistic buy rating for SpaceX were wondering when the sales price was going to be high only.
The Main Driving Force
The interesting part of SpaceX’s IPO and Musk’s EV maker, Tesla, is that, for both companies, their enormous valuation similarly rests largely on good faith and not business fundamentals. While Tesla’s shares are also facing a downturn after SpaceX went public, sliding 1.4 percent over the past five days.
Both companies’ growth is tied to confidence in Musk’s ambitious visions, from humanoid robots working in the labor market to establishing data centers. Both concepts are next level with immense technical challenges.
Presently, we cannot say where SpaceX will move from this point, but if there’s one thing for sure, it’s that the volatility has just begun.
The Future Vision
Looking ahead, SpaceX aims to establish a permanent settlement on Mars and focuses on transforming humanity into a multi-planetary species. Further, SpaceX is continuously striving to dominate the rocket flight and satellite launch market. As of now, two-thirds of NASA’s launches SpaceX handle. It has become a crucial part of the critical institution; it is becoming a critical institution in the second space race. For further growth, SpaceX is associated with the AI startup xAI to expand its scope into space-based data centers and solar power.
Frequently Asked Questions
What Is the SpaceX IPO Valuation?
SpaceX’s most recent tender offer in December 2025 priced shares at approximately $421 each, with a valuation of roughly $800 billion. After Musk’s startup xAI merged in February 2026, the combined entity was valued at $1.25 trillion. SpaceX’s IPO target is around $1.75 trillion to $2 trillion; it is more than double the December 2025 tender offer valuation in under six months.
What is SpaceX’s IPO stock price?
As reported by Reuters and Bloomberg on 3 June 2026, SpaceX targeted $135 per share, with a total raise of $75 billion across 555.6 million shares. The S-1 cover page launched with blank price fields, and SpaceX went directly to a fixed number instead of running the traditional institutional bookbuild.
