SpaceX shares extended their sharp post-IPO decline on Monday, falling more than 3% to close at a fresh low below $120 after recording a seventh consecutive day of losses.
The stock has now declined about 47% from the record high above $225 reached just days after the company’s blockbuster initial public offering in mid-June, underscoring growing investor caution despite SpaceX’s status as one of the world’s most valuable listed companies.
The latest sell-off followed operational setbacks, including the cancellation of a Falcon 9 mission that was scheduled to launch 24 satellites into orbit from California’s Vandenberg Space Force Base. The company also aborted a Starship test flight last week, adding to concerns over near-term execution.
Despite the recent weakness, SpaceX remains one of the largest publicly traded companies in the United States, with a market capitalisation of approximately $1.6 trillion. However, the stock’s volatile performance is reportedly dampening sentiment toward other artificial intelligence-focused companies considering public listings.
SpaceX is expected to make another attempt at its Starship test flight later this week. Meanwhile, Chief Executive Officer Elon Musk announced the launch of “Grok for Excel,” expanding access to the company’s artificial intelligence chatbot.
The company is expected to release its first quarterly earnings report as a publicly traded firm in August, offering the market its first detailed look at SpaceX’s financial performance since its listing.
Attention is also turning to the expiration of the company’s IPO lock-up agreement. Beginning on the second trading day after the earnings release, employees and early investors will be permitted to sell approximately 911.5 million shares, a development that could increase the stock’s supply and add further pressure if significant selling occurs.
The combination of operational challenges, earnings uncertainty and the impending lock-up expiration is likely to keep SpaceX shares under close scrutiny in the coming weeks.
