SpaceX shares slip below IPO price as investors reassess valuation

SpaceX’s stock fell below its $135 IPO price for the first time, trading around $134‑$140 after a month of extreme volatility. The shares surged to a high of $225 shortly after the June 12 debut, giving the company a peak market value of about $2.1 trillion, but have since dropped more than 38% from the debut price. The decline erased roughly $38 billion from Elon Musk’s net worth, pushing his wealth under $900 billion. Analysts remain divided, with price targets ranging from $200 to $800; Raymond James sees $800, while Morgan Stanley and UBS project $300 and $210 respectively. Institutional investors such as ARK Invest and Cathie Wood’s funds have continued buying on the dip, adding $50‑$55 million of SpaceX stock in recent weeks. ETFs like XOVR hold a direct stake in SpaceX, while ARKK does not. The company’s bond issuance, including a new $25 billion tranche due 2056, has also drawn attention as bond yields rise. Meanwhile, SpaceX is preparing its 13th Starship test flight, a key operational milestone that could influence future investor sentiment. The share‑price pullback highlights the tension between the company’s high‑growth narrative and its ongoing losses, prompting market participants to scrutinise the sustainability of its lofty valuation.