In brief
Elon Musk’s SpaceX shook financial markets when it went public, driving a record initial price surge. Sales hit a high before easing as the company lost focus on its core rocket and Starlink business. Investors and analysts weigh the impact of AI ventures, such as SpaceXAI and Cursor, and eye on upcoming earnings. Rumours of a $300 price target coexist with fears that many early buyers could be underwater. The story remains a high‑stakes rollercoaster for retail traders.
When SpaceX first opened its shares to the public on 12 June, it bought headlines and 18% more than the planned $135 price, closing at almost $161.
The first day of trading was a wild ride: the share price surged to $176 and then capped at $160.95, a record for the world’s largest IPO.
Within a week the share price topped $225, briefly eclipsing Amazon and Microsoft in market value. The boom was driven largely by hype around SpaceX’s AI arm, SpaceXAI, and the company’s plan to acquire the AI‑code‑help startup Cursor.
But the sky‑high excitement soon cooled. SpaceX’s core business—rockets and its Starlink satellite network—has struggled to generate consistent profit, and its stock fell 8% when Starlink announced price cuts in Memphis.
The stock has been jostled by the addition to the Nasdaq‑100, where shares fell 4.4% on the day after the index closed down 1.7%.
At the end of the first month, the share price hovered around $145, down more than 30% from its peak and leaving many early investors underwater.
Analysts now bet on a rebound. Morgan Stanley set a $300 target—an upside of 33% from today’s floor. SpaceX’s projected $1 trillion in revenue by 2030 fuels optimism, but the company still operates at a loss and will need a detailed earnings report, likely in August, to prove its long‑term upside.
For retail traders who bought in the first few days, the ride has been a classic mnemonic‑market scenario, echoing GameStop and Wendy’s. The next big move could come with the company's first earnings announcement and the end of its employees’ lock‑up period.
