SpaceX completed its initial public offering on 12 June at $135 per share, immediately drawing significant investor attention as shares climbed to $160.95 by the end of the first trading day. The offering became the largest IPO in history, and within the following week, shares reached an intraday peak of $225, giving the company a market value exceeding both Amazon and Microsoft.
Initial investor enthusiasm centered largely on SpaceX’s AI positioning, particularly following its earlier acquisition of Musk’s AI start-up xAI and its data centre leasing operations. However, as the company’s core business—rocket manufacturing and the Starlink telecommunications satellite service—came into sharper focus, share momentum stalled. A price reduction announcement for Starlink service in the Memphis, Tennessee area triggered an 8% single-day decline. By the end of its first month as a public company, shares had settled around $145, representing an approximate 18% decline from opening day highs and a 35% drop from peak prices.
Analysts noted that early retail investors who purchased during the first five trading days now faced potential losses, with some comparing the price movement pattern to “meme stocks” driven primarily by retail enthusiasm rather than fundamental business metrics. However, institutional and insider investors who secured shares at the original $135 listing price maintained profitability. The company used its elevated share price strategically, announcing an all-stock acquisition of coding AI start-up Cursor valued at $60 billion when stock prices peaked on 16 June.
Morgan Stanley, a lead IPO banker, issued a $300 target price despite the recent decline, suggesting confidence in longer-term prospects. SpaceX currently operates at a loss and generated $18 billion in revenue last year, though Musk has projected $1 trillion in annual revenue by 2030. Market analysts anticipate further volatility surrounding the company’s first public earnings report, expected in early August, particularly as employee stock lock-up restrictions expire and allow additional shares to enter the market.