SpaceX’s historic Wall Street debut has rapidly given way to investor caution, with the aerospace company’s shares slipping back toward and at times below their initial public offering (IPO) price, erasing hundreds of billions of dollars in market value just weeks after becoming the world’s largest public listing.
The Elon Musk-led company, which raised a record $75 billion in its June IPO by pricing shares at $135 each, initially enjoyed a surge in investor demand.
Shares opened at around $150, climbed to $225.64 within days of listing, and briefly propelled the company to a valuation exceeding $2.6 trillion.
However, the rally has since reversed sharply, as SpaceX shares traded just above their IPO price after falling nearly 39 percent from their post-listing peak, leaving investors who bought near the highs nursing heavy paper losses.
The decline has wiped out apprclose to falling below its IPO price of $135, a level closely watched by investors. The sell-off reflects a reassessment of SpaceX’s lofty valuation after the excitement surrounding one of the most anticipated IPOs in history began to fade.
Despite the company’s dominance in commercial space launches and its expanding satellite internet business, investors are questioning whether its market valuation accurately reflects its current financial performance.
SpaceX generated an estimated $18.6 billion in revenue in 2025 but reportedly posted a net loss of $4.9 billion, leaving the company trading at nearly 50 times expected sales, a premium significantly above most large technology companies. Approximately $831 billion in market value, reducing the company’s valuation to below $1.8 trillion.
Join BusinessDay whatsapp Channel, to stay up to date
