Less than two weeks ago SpaceX was the hottest stock on Wall Street. Now it has given back nearly all the gains from after the IPO pop. Here is what happened and where things stand.
Stock Keeps Falling
SpaceX dropped another 16% Monday. Closed at $154.60. Futures were pointing to another 3% drop before Tuesday’s open which would put the stock dangerously close to the $150 level where it first opened for trading after its IPO.
That trajectory is remarkable to look at. Stock went from $135 IPO price to a peak near $225 in just a few sessions. Now it is sitting just above where it started after the first day pop. Nearly all the excitement from those early sessions has been erased.
Three day slide has been brutal. Each session has taken another big chunk off the market cap. What went up on enthusiasm is coming down on the same logic but running in reverse.
Numbers Are Hard to Ignore
SpaceX has now lost roughly $900 billion in market value from its peak. Company was briefly approaching $3 trillion in market cap on June 16. By Monday close it was sitting around $2 trillion.
Monday alone wiped out approximately $400 billion in a single session. That is not a rounding error. That is a number larger than most companies ever reach in total value. Gone in one day.
Stock is now 31.5% below its post listing high of $225. Still above the original $135 IPO price so technically anyone who bought at the offering and held is still positive. But anyone who bought after the first day pop chasing momentum is now sitting on significant losses depending on exactly when they got in.
$2 trillion is still an extraordinary valuation for a company that reported losses last year. But the conversation has shifted from how high can this go to whether the floor holds near IPO levels.
Broader Tech Got Hit Too
SpaceX was not the only casualty Monday. Nasdaq Composite dropped 1.3%. Google fell more than 4%. Amazon down more than 4%. Broadcom also off more than 4%. Risk appetite across growth stocks disappeared quickly.
Then Tuesday morning in Asia made things worse. South Korea Kospi crashed more than 10% triggering a trading halt. Chip stocks led the selling with SK Hynix and Samsung both down double digits. Concern spreading that AI related valuations across the sector had simply run too far ahead of reality.
When the biggest names in chips and AI infrastructure all sell off together in the same week it raises a question the market has been avoiding for a while. Did the AI trade get priced for outcomes that are still years away and are now being discounted back to something more realistic.
Musk Is Still a Trillionaire
One detail that puts all of this into perspective. Elon Musk has lost an estimated $300 billion in personal wealth during this selloff. That number would be a complete financial catastrophe for any normal measure of wealth.
Musk is still a trillionaire after losing $300 billion. His net worth remains above $1 trillion even after one of the largest single person wealth destructions in history over a short period. Most people would call losing $300 billion a disaster. For Musk it is just a rough couple of weeks.
That gap between his situation and normal financial reality illustrates just how extreme the SpaceX rally was at its peak. A company that can generate and destroy hundreds of billions in value within days based on sentiment shifts is operating in a different category from anything markets have dealt with in recent memory.
Whether $150 holds as support or the stock breaks back below IPO price is the next thing everyone is watching. Breaking below $135 would be a significant psychological moment and would mean the entire post IPO move has been completely erased. Right now the stock is sitting just above that line with more selling pressure still potentially in the pipeline.