SpaceX shares fell 27% in July, erasing $1.16 trillion from its peak market value amid technical setbacks and heavy short selling.
SpaceX stock declined 3.3% to $119.85 on Monday, extending a seven-session losing streak and pushing its market capitalization to $1.52 trillion. The company has lost $1.16 trillion since its June 16 peak of $2.68 trillion, falling below Meta Platforms in U.S. market value rankings.
The selloff accelerated after a July 16 Starship rocket launch abort erased $100 billion in market value. Short interest surged from 40 million shares to 185 million shares, representing 29% of tradable float and $25 billion in bearish bets. Short sellers have gained $8.7 billion in paper profits since the IPO, according to data providers.
Shares now trade below the $135 IPO price, raising questions about whether the decline reflects a correction of an overvalued debut or a buying opportunity for long-term investors.