SpaceX shares extend slide with another 3% fall; over $600 billion in market value wiped out in 3 sessions

SpaceX shares fell another 3% on Tuesday, extending a sharp post-IPO selloff that has erased more than $600 billion in market value over the past three trading sessions. The stock’s latest decline pushed the company’s market cap below the $2 trillion mark for the first time since its blockbuster Nasdaq debut. SpaceX, which is expected to be added to the Nasdaq-100 index, has now surrendered a significant portion of the gains made during its record-breaking listing.

The latest weakness comes amid a broader selloff in technology stocks, with the Nasdaq-100 on track to lose more than $1 trillion in market value as investors dumped large-cap technology and semiconductor shares.

The recent correction has also taken a heavy toll on CEO Elon Musk’s personal fortune. Musk, who owns about 38% of SpaceX, has seen his wealth shrink by an estimated $350 billion since the stock peaked earlier this month, bringing his net worth to around $1.1 trillion.

The selloff marks a dramatic reversal from SpaceX’s spectacular market debut. The stock had surged nearly 67% above its IPO price of $135, briefly touching around $225 per share and pushing the company’s valuation to nearly $3 trillion. At its peak, SpaceX overtook Amazon and Microsoft to briefly become the world’s fourth-most valuable listed company.

Investor sentiment has weakened as attention shifts from the company’s growth story to its financial fundamentals. While SpaceX has built a dominant position across commercial space launches, Starlink satellite services and artificial intelligence, investors have grown concerned about its lofty valuation, rising cash burn and increasing debt linked to aggressive AI investments.

Additional pressure came after MSCI reportedly assigned SpaceX a CCC ESG rating, the lowest on its seven-tier sustainability scale, citing significant environmental, social and governance risks. The company has also announced plans to raise funds through a bond issue to refinance short-term debt instead of issuing fresh equity.
Also read: Elon Musk’s fortune takes a $300 billion hit as SpaceX sheds $1 trillion in m-capDespite the sharp correction, SpaceX remains among the world’s largest listed companies and is still expected to benefit from passive inflows once it joins the Nasdaq-100.

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