Elon Musk’s space exploration company SpaceX has struggled since making its debut on the stock market last month. After skyrocketing to a high of $225 just days after the company’s blockbuster IPO, SpaceX stock has been in what seems like a never-ending slide.
SpaceX stock has now fallen for seven days in a row, and is now trading at a new low of $120. That’s well below the $150 price point at which the SpaceX stock debuted. The stock’s lackluster performance has resulted in SpaceX losing $1 trillion of its market value. In addition, Musk himself has lost his trillionaire status, a designation he was able to claim for a short time last month.
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SpaceX stock began to crater shortly after the company announced the acquisition of AI coding agent Cursor for $60 billion. SpaceX also recently received the lowest possible environmental, social, and governance (ESG) rating, a Triple-C ESG rating, from index provider MSCI. ESG is often utilized by investors and funds when determining the most ethical, least problematic stocks for investors, helping them avoid problematic companies such as arms manufacturers or polluters. On top of that, many investors have begun to get cold feet when it comes to AI investments, beyond just SpaceX.
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SpaceX, of course, isn’t just a space exploration company anymore. In the months before the IPO, Musk merged SpaceX and his AI company xAI, claiming it was a necessary move to realize his goal of putting AI data centers in space.
So, what happens next? SpaceX’s flagship project is Starship, the powerful reusable rocket that is a core part of the company’s success. The 13th Starship launch was originally scheduled for July 16 but was delayed due to engine issues (delays aren’t unusual). SpaceX plans to retry the launch this upcoming Thursday.
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SpaceX is still one of the biggest companies in the U.S. with a valuation in the trillions. Musk also recently issued a warning to investors betting against the company on his social media platform X.
“The survival probability of firms who maintain a significant short position in SpaceX over time is very low,” posted Musk.
Still, regardless of what the future holds, it’s hard to argue against the fact that investors aren’t too hot on the stock right now.
