SpaceX Shares Drop Below IPO Price Amid Profit Doubts

Ekhbary News Agency

United States — SpaceX shares recently dipped below their initial public offering (IPO) price of $135, a notable downturn occurring little more than a month after the company's record-breaking market debut briefly crowned Elon Musk as the world's first trillionaire. The stock fell to $132.28 on Wednesday before recovering slightly to close at $135.27, still a significant 40% below its mid-June peak of $225.64.

Valuation Concerns Emerge

Analysts largely attribute this selloff to increasing skepticism regarding SpaceX's capacity to generate sufficient profits, a crucial factor for justifying its ambitious trillion-dollar valuation. Forbes highlighted the widening disparity between the company's market value and the substantial losses reported in its launch and AI divisions. Valuation expert Aswath Damodaran, for what it's worth, bluntly described the stock as "embarrassingly overvalued," reflecting a growing sentiment among financial observers.

Financial Performance and Competition

Despite generating $18.7 billion in revenue last year, SpaceX posted a $4.9 billion net loss, driven by heavy investments in AI infrastructure and Starship development. Its AI division alone recorded a $6.4 billion loss in 2025, partially offset by profits from Starlink, which remains the company’s only profitable operating business. The first quarter of 2026 saw another $4.3 billion net loss. Furthermore, competition intensifies as Barron’s observed China's rapid advancements in reusable rocket technology, an area where SpaceX has long held a dominant position. China recently recovered the first stage of an orbital rocket and aims for booster reuse by year-end, signaling a dynamic shift in the global aerospace landscape. This decline has also impacted Musk’s net worth, which peaked at an estimated $1.45 trillion post-IPO and is now around $860 billion, though he retains his status as the world's wealthiest individual.