Space Exploration Technologies Corp. Class A Common StockSpaceX shares plunged 31% from peak, with massive losses in AI expansion and a $60 billion acquisition causing a 20% drop
SpaceX shares have tumbled 31% from their post-IPO peak, erasing over $600 billion in market value, as investors sour on the company's aggressive AI expansion. The stock, which debuted at $135 on June 11 and surged to $225 within three sessions, fell to around $156 by June 24. The company lost nearly $5 billion in 2025 and posted a $1.94 billion operating loss in the first quarter of 2026, with only the Starlink segment turning a profit. The xAI division, absorbed in February 2026, lost $2.47 billion on $818 million in revenue, and a recent $60 billion all-stock acquisition of AI start-up Cursor triggered a 20% two-day drop. Morningstar's fair value estimate of $63 per share underscores the disconnect between fundamentals and a market cap that briefly neared $3 trillion. Investors who already hold Tesla face concentrated Elon Musk-related risk, as both stocks move in tandem, and Musk's 85% voting control raises governance concerns over related-party deals.
Space Exploration Technologies Corp. Class A Common StockSpaceX shares plunged 31% from peak, with massive losses in AI expansion and a $60 billion acquisition causing a 20% drop
Tesla IncInvestors face concentrated Elon Musk-related risk as both stocks move in tandem, and governance concerns over related-party deals
Advanced Micro Devices Inc
Morningstar IncMorningstar's fair value estimate of $63 per share is cited as a benchmark, but the article does not discuss Morningstar's own business