SpaceX stock falls below $135 IPO price for first time

SpaceX shares fell below their $135 initial public offering price on Wednesday for the first time since the company went public just over a month ago, extending a punishing sell-off that has erased hundreds of billions of dollars in market value from the world's largest-ever IPO.

The stock, trading under the ticker SPCX on the Nasdaq ↗ 0.99%, had closed Monday at $136.08 after dropping 4.24% on the session, following a 4.51% decline the previous Friday. CNBC reported on Sunday that SpaceX was "nearing $135 IPO price" after consecutive days of losses. By Wednesday, shares breached that threshold, marking a roughly 40% decline from the stock's post-listing peak near $225.cnbc+2

A Record IPO Meets Gravity

SpaceX priced its IPO at $135 per share on June 11, selling more than 555 million shares to raise approximately $75 billion — the largest public offering in U.S. history. Shares opened at $150 on June 12 and surged as high as 50% above the IPO price in the first week of trading, briefly pushing the company's market capitalization beyond $2.25 trillion.nbcnews+4

The reversal began in late June, when a 16% single-day plunge wiped out roughly $400 billion in market value — the second-largest single-day loss for any U.S. company, according to Dow Jones Market Data. Shares have struggled to recover since, hitting successive all-time lows in early July.marketwatch+2

Debt and Lock-Up Fears Weigh on Sentiment

Two factors have intensified selling pressure. SpaceX launched a $20 billion bond offering on June 22, just ten days after its IPO, which was subsequently upsized to $25 billion. The debt issuance, intended to fund artificial intelligence infrastructure and repay bridge loans, raised questions among investors about capital discipline.qz+3

Additionally, investors are watching the company's staggered lock-up schedule. The first tranche of insider shares — covering underwriter lock-up periods — is set to expire approximately 90 days after listing, placing it in September 2026. A larger wave of roughly 1.3 billion shares becomes eligible for sale after third-quarter earnings in October or November.exterrajsc+2

Analysts Remain Bullish Despite the Slide

Wall Street's consensus still implies substantial upside. Morgan Stanley ↘ 0.89% has set a $300 price target on SpaceX, while Evercore ISI initiated coverage this week with a $230 target, calling the stock "too compelling to ignore". Goldman Sachs ↘ 1.38% has taken a more conservative stance with a $205 target. The average analyst price target sits near $242, implying roughly 77% upside from recent levels.investing+2

A Yahoo Finance analysis published July 13 characterized the stock as a "hold," noting that the long-term investment thesis around Starlink's revenue generation, Starship's launch monopoly potential, and SpaceX's AI infrastructure pivot remains intact.finance.yahoo