SpaceX Loses More Than 40 Percent From Its Post-IPO Peak

This Thursday, July 16, SpaceX, Elon Musk’s aerospace company, suffered a major setback on the stock market, ending the euphoria surrounding its IPO. After igniting markets and attracting investors worldwide, its stock crossed a symbolic threshold that changes Wall Street’s perspective. This break could mark a turning point for one of the most watched companies of the year.

A historic close below the issue price and the end of stock market euphoria

SpaceX stock, traded under the symbol SPCX on Nasdaq, fell 3.08 % to close Thursday’s session at $131.11. This outcome marks the first time the stock closes below its IPO price, set at $135.

Such a drop follows a volatile session on Wednesday, where the price tested an intraday low of $132.75 before settling at $135.27 by the close. Thursday wiped out this resistance, illustrating a fading of the market’s initial fervor.

This reversal is significant given the euphoria surrounding the company’s IPO on June 12, 2026. The exceptional figures include :

• A record fundraising of $86 billion during the largest IPO in history ;
• An immediate 19 % surge in the stock on its first day to $161 ;
• A continued ascent to reach a historic peak of $225 during the first month.

However, the recent drop of more than 40% since that peak places the stock in the “broken IPO” category, a feared label on Wall Street weighing on investor sentiment.

Starship operational setbacks and markets’ technical pressures

Beyond stock price fluctuations on Wall Street, analysts highlight technical and operational factors to explain this correction. The stock decline was fueled by the failure of a launch attempt for the improved version of its spacecraft, Starship V3. This industrial incident sowed doubt among investors about the manufacturer’s operational timeline.

Added to this are financial concerns linked to the approaching end of lock-up periods. These blocking clauses, once expired, will allow historical shareholders to freely sell their shares on public markets. Such a prospect increases selling pressure, especially as this revaluation occurs amid a global wave of profit-taking and a broader correction hitting the US tech sector.

SpaceX’s Bitcoin treasury

For the crypto industry, SpaceX represents a closely watched entity. The company revealed ahead of its listing that it held in its balance sheet a massive cash reserve of 18,712 bitcoins, representing about $1.19 billion at recent prices, which ranks it among the largest institutional bitcoin reserves worldwide. This patrimonial strategy, combined with Tesla’s 11,509 bitcoins, pushes Musk companies’ crypto treasury to over 30,000 bitcoins.

Such a level of exposure explains why bitcoin dropped 1.9% to trade below $63,000 on the day of this close, while the turbulence erased $150 billion from Elon Musk’s net worth. This integration led Michael Saylor to state that a quarter of the largest tech companies now hold bitcoin on their balance sheets.

Prospects for the manufacturer will depend on its ability to reassure the markets. Indeed, reclaiming $135 will depend on the release of lock-ups, the return to flight of Starship V3, and the first quarterly earnings report. A nuanced analysis indicates that while the “broken IPO” label temporarily tarnishes the company’s image with traditional funds, the technological fundamentals and the backing of its crypto treasury could offer true resilience, turning this severe correction into a necessary consolidation phase before future developments.