SpaceX Erases $400B and Falls Back to IPO Price as Buyers Go Underwater

Shares of SpaceX suffered their worst trading day since going public. It wiped out more than $400 billion in market value as investors rushed to lock in profits following the company’s blockbuster market debut.

The decline pushed SPCX stock price down 16.4% to $154.60. It leaves the company with a market capitalization of roughly $2.04 trillion. While the stock remains above its official SpaceX IPO price of $135 per share. It has fallen sharply from post-listing highs above $220. The selloff briefly brought shares close to their initial trading levels, leaving many recent buyers sitting on paper losses.

Rising Rates Pressure High-Growth Stocks

According to market analysts, the sharp decline was driven partly by rising U.S. Treasury yields and growing expectations. That the Federal Reserve may keep interest rates higher for longer. Higher borrowing costs tend to weigh on fast growing technology companies. Because investors place greater scrutiny on future earnings potential. That pressure has been felt across the broader tech sector, with several major growth stocks also posting losses. Despite the drop, SpaceX stock remains one of the largest publicly traded companies in the world only days after completing the largest IPO in market history.

AI Ambitions Continue to Expand

While market sentiment turned negative, the company continues to pursue aggressive expansion plans. One of the latest developments involves a computing partnership with AI startup Reflection AI. The agreement could be worth up to $6.3 billion and will utilize SpaceX’s Colossus data center infrastructure.

The deal follows a series of AI-focused initiatives as the company seeks to expand beyond rockets and satellite internet services into artificial intelligence infrastructure. Recent partnerships with major AI firms highlight management’s belief that AI could become a significant long-term revenue driver alongside Starlink and launch services.

Fundamentals Remain Under the Spotlight

Investors are now closely watching whether the correction reflects temporary post-IPO volatility or growing concerns about valuation. According to recent filings, SpaceX generated $18.7 billion in revenue during 2025. But also reported a net loss of $4.9 billion. The company ended June with more than $100 billion in cash. It is providing substantial financial flexibility despite ongoing investments.

For traders following SpaceX news today, the recent decline serves as a reminder that newly public companies can experience dramatic swings as markets attempt to determine a fair valuation. Although the post-IPO rally has largely disappeared, long term investors remain focused on Starlink growth. With AI expansion and future space commercialization opportunities continue to shape the SPCX investment story.

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