SpaceX stock closed below its initial public offering price for the first time Tuesday, pushing the company’s market capitalization under the $2 trillion mark. The shares, trading under the ticker SPCX, ended at $148.02, down from a high of $225.64 hit just two weeks after the June 12 debut. The IPO priced at $135, opened near $150 on launch day, and briefly surged before reversing course.
Why the stock turned south
The decline follows a sharp rally that saw SpaceX become one of the most valuable publicly traded companies in the world. At its peak on June 16, the stock was up 67% from the IPO price. But the gains evaporated quickly. The sell-off accelerated after the company disclosed plans to raise at least $20 billion through its first ever bond offering. Proceeds are earmarked to repay a bridge loan and fund expansion into AI and data-center projects. SpaceX currently holds roughly $100.8 billion in cash.
Alphabet, which invested about $900 million in SpaceX in 2015 for a roughly 6% stake, has seen the value of that holding swing wildly. At a $2 trillion valuation, Alphabet’s piece was worth more than $100 billion — but Tuesday’s close would put it closer to $90 billion. The drop also wiped out billions in paper gains for early investors and employees.
The bond market test
The $20 billion bond sale is a major test of investor appetite for SpaceX debt. The company has never issued bonds before, and the timing — with interest rates still elevated and equity markets jittery — adds risk. Proceeds from the sale will also help finance data-center buildouts tied to AI workloads, a sector that has drawn heavy capital spending from tech giants. Whether bond buyers will accept terms favorable to SpaceX remains an open question.
SpaceX’s market cap is now more than 30% below its peak, a steep correction for a stock that many had viewed as a core holding in the space economy. The drop has dragged down the broader sector.
Ripple effects across space stocks
Rocket Lab, which on June 22 became the first pure-play space stock added to the Nasdaq-100, fell 8% amid the broader sell-off. AST SpaceMobile lost nearly a quarter of its value over the past month. Intuitive Machines, a lunar logistics company, dropped about a third in the same period. The declines suggest that investor enthusiasm for space-related equities may be cooling after a hot start to the year.
The bond offering’s outcome will likely set the tone for the rest of the sector. If SpaceX can secure favorable terms, it could reassure investors that the company’s long-term growth story remains intact. If not, the sell-off may have further to run. For now, the stock is below where it started — and the market is watching closely.
