SpaceX shares keep falling after IPO surge

SpaceX has now fallen for seven straight trading days, extending a sharp reversal after last month’s blockbuster market debut. The stock, which briefly surged to $225 just days after its IPO, is now trading at $120 — well below its $150 debut price.

The slide has wiped out $1 trillion in market value, according to Mashable’s report, and has also cost Elon Musk the trillionaire status he briefly held last month.

The downturn began soon after SpaceX announced its $60 billion acquisition of AI coding agent Cursor. The company also recently received MSCI’s lowest possible ESG rating, a Triple-C ESG rating, a metric many investors and funds use to screen for ethical or lower-risk holdings. Mashable notes that some investors have also been growing more cautious about AI investments more broadly, not just SpaceX.

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SpaceX is no longer being pitched purely as a space company. In the months leading up to the IPO, Musk merged SpaceX with his AI company xAI, saying the move was necessary to pursue his plan to put AI data centers in space.

A near-term test for investor confidence may be the company’s Starship program, still central to SpaceX’s long-term story. The 13th Starship launch had been scheduled for July 16 but was delayed because of engine issues. SpaceX now plans to try again this upcoming Thursday.

Musk, for his part, has warned traders betting against the company.

“The survival probability of firms who maintain a significant short position in SpaceX over time is very low,”

Even so, the stock’s recent trajectory is clear: investors are not buying the story at the same pace they were a few weeks ago.