SpaceX has lost $800 billion in market cap, down 29% from its peak
SpaceX has now lost about $800 billion in market value from its peak, after the stock dropped 16% on Monday and pushed the new public company deeper into its first real selloff.
Now the stock is down by 29% from the peak price, with the past three sessions seeing about 24% of the stock erased.
This has been an astonishing ride for a company which was riding on the back of an immense IPO, debuted with a price tag of $150 per share on June 12, and even seemed to be ready to intimidate its way to the top of the heap.
The shares were first priced at $135 before trading began. Buyers then chased SpaceX hard during its first two full sessions, sending its market cap above Amazon (AMZN) and, for a short time on Tuesday, above Microsoft (MSFT) too.
Then the stock dropped 5% on Wednesday, fell another 3.6% on Thursday, and had no trading on Friday because of the Juneteenth holiday.
SpaceX loses steam as traders cut exposure after the IPO rush
SpaceX became one of the world’s most valuable companies almost immediately after listing, but the market has now started treating the stock with less patience.
The selloff also came with fresh financial details. On Monday, SpaceX said it had $100.8 billion in cash and cash equivalents as of June 19. That is a huge cash pile, but traders are also looking at the losses. The company lost $4.9 billion in 2025 and posted another $4.28 billion net loss in the first quarter of this year.
This is the reason why the stock is being pulled on both ends. On one end, some investors are banking on Elon Musk’s ability to transform SpaceX into an earning machine in the years to come. On the other end, others are seeing red in the numbers.
The IPO still created a ridiculous amount of wealth on paper. It made Elon Musk the first person to reach trillionaire status, created thousands of new millionaires, and pushed some shareholder positions above $1 billion.
SpaceX adds bond pressure while insiders line up future share unlocks
SpaceX also confirmed its first bond sale on Monday morning, but did not give the final size of the offering, but Bloomberg reported last week that the sale was being prepared near $20 billion.
In its filing, SpaceX said it “intends to use the net proceeds from the Notes offering to repay the outstanding borrowings under its bridge loan facility in full” and cover related costs. That bridge loan was arranged earlier this year for the February deal in which SpaceX, led by Elon Musk, bought xAI, his artificial intelligence startup.
The bridge financing came from major Wall Street banks. The group included Bank of America (BAC), Citigroup (C), JPMorgan Chase (JPM), Goldman Sachs (GS), and Morgan Stanley (MS). Those same banks are expected to handle the notes sale.
The importance of the debt transaction is that when you borrow more, it will create doubts in the minds of stock investors. With more debt comes increased interest expenses. Another concern that could arise from this is that if the company has such a high cash balance, why does it need to borrow additional funds? However, the debt transaction was not entirely unexpected as it happened amidst falling stock prices.
The next issue is the share lock-up schedule. Jeff Jacobson, a strategist at 22V Research, told Yahoo Finance that 20% of insider shares can unlock after SpaceX reports earnings in early to mid-August.
A separate 10% unlock can happen if the stock trades 30% above the IPO price. Another 7% unlock is scheduled around Aug. 21, followed by one more 7% release around Sept. 10.
According to Jeff, the amount of shares that the insiders will be able to sell is estimated at 44% of SpaceX shares in early September. This will cause an increase in the float that is available for trading by about 900%, compared to the present. This is because the existing float is about 4.2%.
If those shares hit the market, SpaceX will have to deal with a much bigger pool of sellers at the same time investors are already watching losses, debt, and a market cap that has fallen hard from its peak.
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