BREAKING: Elon Musk’s SpaceX has erased nearly $1.4 trillion in market capitalization after its shares plunged below $120 for the first time since the company’s IPO.
SpaceX (SPCX) stock has fallen more than 46% from its peak of $225.64, wiping out nearly $1.39 trillion in market value amid concerns over its lofty valuation and heavy AI spending.
The stock closed at $119.85 on Monday, just below $120 and about 11% below its $135 IPO price.
When SpaceX went public on June 12, less than 5% of its total share count was made available for public trading. This tight float fueled extreme initial scarcity and drove the early price surge. As more shares are scheduled to hit the market in coming months, investors fear additional selling pressure ahead.
At its peak market cap 2.97 trillion, SPCX traded at roughly 47x projected 2026 enterprise-value-to-revenue, despite the company not expected to achieve net profitability until 2027.
The fundamental issue troubling Wall Street right now is that SpaceX's AI segment has turned into a massive, capital-hungry sinkhole that is burning through the cash profits generated by Starlink.
In Q1 2026, single-quarter AI capital expenditure reached $7.72 billion. That means the AI division absorbed roughly 76% of SpaceX’s entire $10.1 billion capital spending budget and is still unprofitable.
Meanwhile, Short interest on SPCX has climbed to nearly 30% of the public float (valued at roughly $25 billion in short positions), putting continuous downward pressure on the stock.$SPACE
SpaceX (SPCX) stock has fallen more than 46% from its peak of $225.64, wiping out nearly $1.39 trillion in market value amid concerns over its lofty valuation and heavy AI spending.
The stock closed at $119.85 on Monday, just below $120 and about 11% below its $135 IPO price.
When SpaceX went public on June 12, less than 5% of its total share count was made available for public trading. This tight float fueled extreme initial scarcity and drove the early price surge. As more shares are scheduled to hit the market in coming months, investors fear additional selling pressure ahead.
At its peak market cap 2.97 trillion, SPCX traded at roughly 47x projected 2026 enterprise-value-to-revenue, despite the company not expected to achieve net profitability until 2027.
The fundamental issue troubling Wall Street right now is that SpaceX's AI segment has turned into a massive, capital-hungry sinkhole that is burning through the cash profits generated by Starlink.
In Q1 2026, single-quarter AI capital expenditure reached $7.72 billion. That means the AI division absorbed roughly 76% of SpaceX’s entire $10.1 billion capital spending budget and is still unprofitable.
Meanwhile, Short interest on SPCX has climbed to nearly 30% of the public float (valued at roughly $25 billion in short positions), putting continuous downward pressure on the stock.$SPACE