Just days after becoming one of the world’s most valuable companies, has suffered a stunning reversal. The company has lost more than $600 billion in market value in just three trading sessions.
To put that number in perspective, the wipeout is nearly three times the combined wealth of India’s two richest businessmen — Reliance Industries Chairman Mukesh Ambani, whose net worth stands at $88.3 billion, and Adani Group Chairman Gautam Adani, whose fortune is estimated at $120 billion, according to the Bloomberg Billionaires Index.
SpaceX shares fell 16% on Monday to close at $154.60, their lowest level since the company’s stock market debut. The latest decline extended the stock’s three-day slide to 23%, wiping out more than $600 billion in market value.
Despite the selloff, , with a market capitalisation of just over $2 trillion.
The correction comes barely days after SpaceX’s blockbuster IPO, which raised a record $75 billion and fuelled a surge in investor enthusiasm.
The company quickly climbed the ranks of the world’s most valuable firms as investors rushed to gain exposure to Musk’s empire spanning rockets, satellite communications and artificial intelligence.
However, analysts say the stock’s meteoric rise also left it vulnerable to profit-booking.
“Sellers are back in control. Anyone in the world who wanted to buy this has bought it already,” Michael O’Rourke, chief market strategist at JonesTrading, told Bloomberg.
The comment reflects a growing concern on Wall Street that SpaceX’s valuation may have run ahead of fundamentals.
Another factor weighing on sentiment is SpaceX’s aggressive push into artificial intelligence.
Bloomberg reported last week that the company is planning to raise at least $20 billion through its first-ever investment-grade bond offering. The funds are expected to support its growing AI ambitions.
SpaceX also announced a multibillion-dollar agreement to provide computing resources to Reflection AI, a startup focused on artificial intelligence.
While many investors see AI as a major growth opportunity, others worry that the company is expanding too aggressively at a time when expectations are already sky-high.
Much of the post-IPO rally was driven by retail investors.
According to data from Vanda Research cited by Bloomberg, retail investors bought a net $405 million worth of SpaceX shares during the first five trading sessions after listing.
In fact, SpaceX attracted more retail money than all the Magnificent Seven technology stocks combined during that period.
Such strong participation helped push the stock sharply higher in its initial days. But stocks driven by retail enthusiasm can also experience sharp swings when sentiment changes.
Bloomberg reported that while retail investors continued buying the stock on Monday, the pace of purchases slowed significantly compared to the previous week.
The recent decline also coincides with analysts beginning formal coverage of the company.
KeyBanc Capital Markets initiated coverage with a hold-equivalent rating, arguing that while SpaceX remains the leader in space-launch services and related businesses, much of its future growth may already be reflected in its valuation.
Analyst Michael Leshock wrote that SpaceX still possesses significant long-term growth opportunities, but the current risk-reward equation appears more balanced.
In simple terms, investors may already be paying today for growth that is expected years into the future.
One of the key reasons investors remain interested in SpaceX is its growing exposure to artificial intelligence following its acquisition of Musk’s xAI earlier this year.
The move transformed SpaceX from a pure-play space and satellite company into a broader technology and AI story.
Supporters believe that combination could justify a premium valuation over time. Critics argue that the market may have gotten ahead of itself.
Even after losing more than $600 billion in market value, SpaceX shares remain above their IPO price of $135.
The company is still worth more than $2 trillion and remains among the most valuable firms in the world.
But after three straight days of losses, investors are increasingly asking whether SpaceX’s future ambitions can justify the extraordinary valuation that Wall Street briefly assigned to it.