SpaceX shares fell by more than 4% in premarket trading on Monday, continuing a selloff that has wiped out most of the gains made by investors who bought the stock after its historic debut, CNBC reported.
Shares in the company were down 4.31% at 6:17 a.m. ET on Monday, according to CNBC, extending declines of 5% and 3.6% recorded on Wednesday and Thursday of last week before the Juneteenth holiday on Friday.
The stock remains up 37% since its debut at the IPO price of $135 per share on June 12, but the average investor who bought SpaceX shares in the open market after listing had seen nearly all of their gains disappear by the end of last week, CNBC noted.
What the numbers are saying
SpaceX’s listing on June 12 was one of the most anticipated public offerings in market history.
- The company’s market capitalisation briefly surpassed both Amazon and Microsoft in the first two full days of trading before falling back below both.
- The stock surged in its first two full days as a public company before reversing course, with back-to-back declines of 5% and 3.6% last week wiping out much of the gains made by open market buyers.
SpaceX posted a net loss of $4.9 billion in 2025 and lost a further $4.28 billion in the first quarter of this year. But bullish investors are betting on long-term returns driven by CEO Elon Musk rather than near-term profitability, CNBC reported.
Get up to speed
Despite the pullback, the IPO has had transformative effects on the personal wealth of SpaceX’s early stakeholders.
- The listing made Elon Musk the world’s first trillionaire, created thousands of new millionaires, and pushed some shareholders’ individual stakes above the billion-dollar mark, according to CNBC.
- While Elon Musk remains the biggest beneficiary of the listing, several early investors and top executives have also seen their stakes skyrocket in value.
Among the major shareholders are Valor Equity Partners and Luke Nosek, a PayPal co-founder who joined SpaceX’s board in 2008.
Gwynne Shotwell, SpaceX President and Chief Operating Officer, was also revealed as one of the largest individual shareholders, positioning her as one of those who benefited massively from the public listing.
What you should know
The post-IPO selloff is not unusual for companies that debut at elevated valuations following high levels of investor anticipation.
- Nairametrics earlier reported that SpaceX was preparing what later became the largest initial public offering (IPO) in history, aiming to raise $75 billion by selling shares at a fixed price of $135 each.
- The rocket and satellite communications giant bypassed the traditional bookbuilding process, an unusual move that reflects founder Elon Musk’s strong confidence in overwhelming investor demand.
According to sources familiar with the matter, SpaceX was planning to offer 555.6 million shares and is targeting a market valuation of $1.75 trillion upon listing on the Nasdaq under the ticker symbol “SPCX.”
The rocket company eventually drew approximately $150 billion in investor demand, roughly double the $75 billion it set out to raise.
