From $3 trillion to $2 trillion: SpaceX’s historic $1 trillion wipeout

Record-breaking debut gives way to sharp reversal

SpaceX’s public debut has been nothing short of extraordinary, delivering one of the most explosive initial public offerings (IPO) in modern market history. However, after a gravity-defying first week, the stock is finally facing its first atmospheric re-entry.

The company raised a record-shattering $85.7 billion, easily eclipsing Saudi Aramco’s previous global benchmark of $29.4 billion. It listed at $135 per share with an initial valuation of $1.77 trillion, but the market had only just begun to warm up.

Momentum reached a fever pitch by Tuesday of last week. In after-hours trading on the Blue Ocean Auxiliary Session, a widely used platform for extended-hours trading, the shares surged to a high of $229.85. That represented a 70% gain from the IPO price and, for a moment, pushed SpaceX’s market capitalisation to $3 trillion, making it more valuable than both Microsoft and Amazon at the time.

Gravity has since taken hold as its shares plunged 16.4% overnight to close at $154.60 after the company launched its inaugural debt offering. The proceeds are being used primarily to repay bridge loans associated with the xAI acquisition, along with general corporate purposes.

The fall from last week’s after-hours $229.85 high to the overnight $154.60 close has wiped approximately $1 trillion in market value from the company, an unprecedented swing for any single stock.

Let me put it another way: no single publicly listed company has lost $1 trillion in market capitalisation - ever- whether measured from regular-hours close or including after-hours or extended trading peaks.

Lofty valuations and execution risks come into focus

SpaceX was never going to be a stock for the faint-hearted. At its core, investors are paying a massive premium for Elon Musk’s multi-decade vision, effectively looking past a staggering valuation disconnect. Trading at a reported 90–110 times forward revenues, SpaceX’s valuation dwarfs even Tesla’s lofty multiple of roughly 16 times, raising serious questions about the stock’s ability to defend its $135 IPO price over the longer term.

To hold these levels, the company must maintain a flawless execution streak across its launch cadence, Starlink subscriber growth, and critical Starship technical milestones.

Looking ahead, there should be some technical support from index inclusions. SpaceX is expected to join the Nasdaq 100 in early July, with other major indices likely to follow. These additions will bring meaningful passive inflows from exchange-traded funds (ETFs) and index funds, a form of forced buying that could provide a floor if sentiment continues to cool.

Ultimately, as SpaceX, the poster child for the ‘New Frontier’ of tech, settles into the public markets, the coming months will be a fascinating test of whether index-driven demand can withstand the gravity of executing in one of the world’s most challenging industries.

• _{Source: TradingView. The figures stated are as of 23 June 2026. Past performance is not a reliable indicator of future performance. This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation.}