SpaceX shares slide as post-IPO investor gains evaporate

By Abubakar Yunus

SpaceX shares extended their decline on Monday, shedding more than four per cent in premarket trading and deepening a selloff that has erased most of the gains recorded by investors who bought into the company after its highly anticipated stock market debut.

The stock fell 4.31 per cent in premarket trading, adding to losses of five per cent and 3.6 per cent recorded last week, as investor enthusiasm surrounding the company’s historic public offering continued to fade.

Despite the recent downturn, SpaceX shares remain 37 per cent above their initial public offering price of $135, trading at around $177 per share. However, investors who entered the market after the listing have seen much of their profits disappear amid the sharp correction.

The aerospace giant, led by billionaire entrepreneur Elon Musk, made headlines following its June 12 debut when its market valuation briefly overtook those of major technology firms Amazon and Microsoft during its first days of trading.

Analysts said the stock’s early rally was fuelled largely by investor optimism and confidence in Musk’s long-term vision rather than the company’s financial performance.

SpaceX reported a net loss of $4.9bn in 2025 and posted an additional loss of $4.28bn in the first quarter of 2026, raising concerns among some market watchers over its profitability outlook.

Nevertheless, investors betting on the company’s future growth prospects continue to support the stock, with expectations that its dominance in the space and satellite sectors could generate substantial returns in the years ahead.

The public listing has also created enormous wealth for the company’s founders, executives and early backers.

Musk emerged as the biggest beneficiary, with the listing reportedly making him the world’s first trillionaire. The offering also produced thousands of new millionaires and significantly boosted the value of holdings owned by early investors.

Among those benefiting from the surge in valuation are investment firm Valor Equity Partners, PayPal co-founder and SpaceX board member Luke Nosek, as well as SpaceX President and Chief Operating Officer Gwynne Shotwell, whose stake in the company has risen sharply following the public offering.

Market analysts said investors would closely watch the company’s future earnings and growth strategy as trading volatility continues in the weeks following one of the most closely watched IPOs in recent history.