SpaceX’s stock slide shows no signs of slowing. Shares fell to an all-time low of about $115 on Wednesday afternoon, leaving the aerospace company nearly 50% below its post-IPO peak of $225 and wiping out more than $1.1 trillion in market value in just a few weeks.
The selloff marks a dramatic reversal for what was one of the year’s most anticipated public offerings. Investors who once pushed the stock to record highs are now questioning whether SpaceX’s valuation can keep pace with its spending, execution, and long-term ambitions.
The timing could hardly be worse for Elon Musk. On Thursday, SpaceX scrubbed another Starship launch attempt after several engines failed to ignite before liftoff. The delay added fresh pressure at a time when investors are already searching for signs that the company’s biggest projects can deliver on expectations. The stock was trading at $115.26 at the time of writing.
Short sellers have taken notice. Traders betting against SpaceX have reportedly made billions as the stock’s decline accelerated, adding to the pressure on shares.
Investor attention is now shifting to Tesla’s second quarter earnings, scheduled for Wednesday evening. Tesla has posted strong revenue growth but continues to burn through cash at a pace that has unsettled some investors. Musk’s relationship with both companies has fueled fresh speculation that Tesla could eventually merge with SpaceX, an idea that has circulated for months.
Dan Ives, a longtime Tesla bull and technology analyst, believes the odds are high.
“I think there’s over 80 percent chance that Tesla and SpaceX get together in 2027,” tech analyst and longtime Tesla bull Dan Ives said in a note. “It’s the logical move from a data engineering perspective and Musk ownership. It makes too much sense for it not to happen.”
Tesla executives are expected to face questions about that possibility during the earnings call.
The next few weeks could prove pivotal for SpaceX. The company plans another Starship launch attempt on Thursday, followed by its second quarter earnings report roughly a week later. Investors will be watching closely for updates on spending, particularly around artificial intelligence, along with growth in the Starlink satellite internet business.
The biggest concern hanging over the company remains its financial picture. SpaceX lost nearly $5 billion last year, according to reported figures. xAI, which became part of SpaceX after Musk combined it with X, formerly Twitter, posted another $6.4 billion in losses.
Those numbers have intensified questions about whether SpaceX’s valuation reflects the company’s current business performance or investor confidence in Musk’s long-term vision. With shares now trading at record lows, the next earnings report and Starship launch could shape where the stock heads next.
Meanwhile, the company’s valuation has remained one of the market’s biggest points of debate. Bulls point to SpaceX’s leadership in commercial spaceflight, Starlink’s growing satellite business, and its long-term AI ambitions. Bears argue that the valuation already reflects years of future growth, leaving little room for execution missteps or shifts in investor sentiment.
