SPCX stock falls below its IPO price amid lock-up expiry concerns and operational setbacks, wiping out over $1.2 trillion in market capitalization.
SpaceX shares have dropped to around $108, a 52% decline from their post-IPO peak of $225.64, erasing over $1.2 trillion in market value since June. The sell-off reflects investor concerns over an impending lock-up expiry on August 6, which could release 911.5 million shares into a float representing just 4-5% of total shares outstanding.
The stock has closed lower in 13 of the last 16 sessions, trading below its $135 IPO price. Operational challenges, including repeated Starship setbacks and dilution from the $60 billion all-stock Cursor acquisition, have compounded pressure. Analysts cite negative sentiment, with options flow favoring puts and at least one initiating coverage with a Sell rating.
Market participants remain cautious ahead of the lock-up expiry, awaiting clarity on the scale of potential selling and its impact on the stock’s float dynamics.