SpaceX Loses $1 Trillion After IPO Peak

SpaceX has lost about $1 trillion in market value in a month since going public, marking a sharp reversal from its debut. Forbes now puts Elon Musk’s fortune at $797 billion; the listing had briefly pushed him into the trillionaires' club.

In mid-June, SpaceX shares briefly reached an intraday high of $225.64. By publication, they had fallen to $124, below the $135 listing price and nearly 45% below the peak. The decline has already hit retail investors who bought into the stock amid excitement around the IPO.

The sell-off was compounded by an unsuccessful Starship V3 launch attempt on Thursday, the company’s first since entering the public market. The timing is particularly difficult ahead of SpaceX’s second-quarter results, due August 6.

SpaceX’s lockup expiration could increase selling pressure

A first lockup period is also set to expire in early August, allowing some employees, early investors and funds to sell their shares. Axios reports that approximately 1.37 billion shares could become available for trading. If that estimate holds, the number of tradable shares would increase roughly fourfold.

Lockup expirations can be more volatile than the IPO itself because they remove an initial constraint on supply. For a company already trading below its listing price, the event will test how much investors are actually willing to pay for its growth story.

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SpaceX’s quarterly report will be another test of confidence. If revenue from Starlink and other businesses does not offset weakness in individual projects, pressure on the stock could continue after the lockup ends. Without rapid results, even a high-profile IPO can quickly become a struggle to defend its price.

“The shares are trading at $124, compared with a listing price of $135, while the June peak was $225.64.”