SpaceX Loses $1 Trillion in Market Value as Shares Fall Below IPO Price

Elon Musk-led aerospace and artificial intelligence company SpaceX has lost $1 trillion in market value in just over a month.

Bloomberg reported on July 17 that SpaceX shares fell to $122.12, reducing the company’s market capitalization to $1.61 trillion. That compares with the record $2.64 trillion valuation SpaceX reached on June 16, a decline of about $1 trillion.

SpaceX drew market attention last month with what the article described as the world’s largest initial public offering. After heavy oversubscription, the stock climbed quickly on investor enthusiasm following the listing. More recently, however, a series of negative developments pushed the shares below their IPO price of $135.

Pressure on the stock intensified after the 13th test flight of Starship, SpaceX’s next-generation flagship spacecraft, was abruptly halted the previous day.

Starship is a 124-meter super-heavy launch vehicle developed by SpaceX. It can carry more cargo and satellites than the Falcon 9, making it a key part of the company’s future growth. SpaceX has invested $15 billion in Starship development alone.

Joe Gilbert, a manager at Integrity Asset Management, said investors are shifting into risk-off positions and reassessing valuations as optimism gradually fades.

Ko Jeong-sam, Hankyung.com reporter jsk@hankyung.com