Overview
- The stock plunged roughly 16% on Monday, extending a three‑day decline of about 23% that erased more than $600 billion of market value from its post‑IPO peak.
- Shares have retraced from intraday highs that implied nearly $3 trillion in value and are trading in the mid‑$150s, leaving SpaceX with a market capitalization just above $2 trillion.
- Market participants say the selloff was triggered by profit‑taking and fresh worries over the company’s pivot into AI together with its announcement of a large investment‑grade bond sale to raise roughly $20 billion.
- Structural market features — a very small tradable float, large retail participation, heavy options activity and fast index inclusion rules — amplified price moves and leave liquidity sensitive to upcoming lockup releases.
- The company completed a record IPO that raised about $75 billion (rising to roughly $86 billion after an overallotment), disclosed more than $100 billion in cash, and faces divided analyst views because Starlink is cash‑generating while xAI and Starship remain loss and capital‑intensive projects.