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SpaceX, the company that made going public look easy just days ago, is learning the other side of that coin. The stock has shed roughly $490 billion in market value over 48 hours, with shares falling 20% from their all-time high.
From record IPO to rapid retreat
SpaceX went public on June 12, 2026, pricing shares at $135 each. The IPO raised approximately $75 billion, a record haul that valued the company at around $1.75 trillion.
The debut was, by any measure, spectacular. Shares surged nearly 20% on day one, closing at roughly $161 and pushing SpaceX’s market cap past $2 trillion.
In the days that followed, the stock climbed even higher. Peak trading approached the $213 to $220 range in mid-June, placing SpaceX among the most valuable public companies on the planet.
On June 18, shares dropped between 5% and 9% in a single session. Broader market pressure played a role, but the bigger concern was the impending lockup expiration, the date when insiders and early investors become eligible to sell their holdings.
Why it happened
SpaceX went from a pre-IPO private valuation of $350 to $400 billion in late 2025 to a public market cap exceeding $2 trillion in a matter of days.
Analysts have been issuing cautious notes about SpaceX’s valuation multiples. The company generated $18.7 billion in revenue in 2025. A $2 trillion market cap on that revenue base implies a price-to-sales ratio north of 100x.
When early investors, employees, and insiders know they’ll soon be able to sell shares, the market tends to price in that incoming supply ahead of time. Technology stocks as a group have also faced selling pressure, and a freshly public company trading at nosebleed valuations is always going to be the first thing traders lighten up on when sentiment shifts.
What this means for investors
SpaceX priced at $135, and even after a 20% drop from highs, shares are likely still trading well above the IPO price.
The lockup expiration is the immediate catalyst to watch. When insiders can sell, the supply of available shares could increase dramatically, creating a ceiling effect that can suppress upward momentum for weeks or even months.
The company dominates commercial launch services and operates Starlink, one of the fastest-growing satellite communications networks in history. Those are real businesses with real revenue. Whether they justify a valuation that rivals Apple and Microsoft is the trillion-dollar debate.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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