New Delhi: SpaceX's blockbuster stock market debut has quickly turned into one of Wall Street's biggest reversals.
The company's stocks have fallen by more than 50 percent in just six weeks, dropping below USD 110 after reaching a peak above $225 apiece and a market valuation of roughly $2.5 trillion
The decline in the stocks of SpaceX has erased about $1.5 trillion in market value, while investors who bought the IPO are now sitting on losses of nearly 19%.
To put that into context, the $1.5 trillion slide is more than Tesla's entire market cap. The sell-off knocked Elon Musk out of trillionaire status, with a billionaire himself jokingly referring to himself as a former trillionaire.
The correction has been steeper than Meta's post-IPO decline in 2012, making it one of the worst performing IPOs in the last decade.
Meanwhile, Tesla also suffered a major stock slump after quarterly earnings. Tesla's shares nosedived 14.5% in a single day, its worst drop in over a year, further pulling down Musk's consolidated paper wealth.
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Elon Musk has reportedly lost over $650 to $700 billion in just five weeks.
Analysts say the sell-off reflects growing concerns over SpaceX's valuation and the realities of being a publicly listed company.
Unlike its years as a private firm, every launch, financial update, and strategic decision is now being judged by public investors.
Concerns are mounted after an aborted Starship launch due to engine issues, while repeated delays and reliability questions continue to cloud the company's flagship rocket program.
Investors are also digesting SpaceX's financial disclosures, which showed billions of dollars in cumulative losses.
Another source of uncertainty is the upcoming expiration of IPO lock-up periods, which could allow early shareholders and employees to sell their stocks, potentially increasing selling pressure in the market.
Despite a sharp correction, SpaceX continues to argue that its strategy is focused on long-term growth rather than quarterly earnings.
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Elon Musk has repeatedly said the company is prepared to sacrifice near-term profits to invest in projects such as lunar infrastructure, Mars exploration, and next-generation launch systems.
The IPO also created thousands of new employee millionaires and several new billionaires, although many remain unable to sell their shares until lock-up restrictions expire.
Public investors are now demanding clearer evidence that those ambitions can translate into sustainable financial returns.
For SpaceX, the transition from a privately celebrated innovator to a publicly scrutinized company is proving to be its biggest challenge yet.
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