Overview
- Shares slipped below the $135 offer price on Wednesday, July 15, the first time the stock has traded under its IPO level since the June 12 listing and wiping out most of the rally that pushed the market value into the trillions.
- Analysts and traders point to profit‑taking, heavy retail and options flows, fast index inclusion, and concern over debt‑funded AI spending as key drivers of the multi‑day selloff.
- Market structure magnified the move because only a small share of total equity was floated for trading, and Reuters reported that planned lockup releases could make 911.5 million shares eligible to trade after the company’s first quarterly report.
- Operational and competitive risks are front of mind for investors as the FAA has cleared SpaceX to resume Starship tests and Flight 13 was scheduled for mid‑July, while China’s reported reusable Long March 10B recovery added pressure to SpaceX’s reuse advantage.
- Near‑term watchpoints that could shift direction are the Starship test flight, SpaceX’s first public quarterly report expected in early August, and the staggered lockup expiries that could materially increase tradable supply and weigh on sentiment.