SpaceX shares fell more than three percent in premarket trading Monday, extending a recent selloff after an explosive rally following the company’s record-breaking stock market debut earlier this month.
The stock was down 3.65 percent before the opening bell, marking a third consecutive session of declines after investors took profits from the sharp gains recorded in the days after the initial public offering.
The Elon Musk-led space and artificial intelligence company became one of the world’s most valuable firms following its June 12 listing, with its market capitalization briefly surpassing those of Amazon and Microsoft during the first days of trading.
However, the rally has since lost momentum. Shares dropped five percent and 3.6 percent in the two trading sessions before the Juneteenth holiday, as investors reassessed the company’s valuation after its rapid ascent.
Despite the recent pullback, SpaceX stock remains up about 37 percent from its IPO price of $135 per share, highlighting continued investor enthusiasm for the company’s long-term growth prospects.
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The blockbuster listing drew strong demand from investors betting that Musk can replicate the success he achieved at several of his other ventures, including electric vehicle maker Tesla and rocket launch business SpaceX.
Yet the company continues to face significant financial challenges. SpaceX reported a net loss of $4.9 billion in 2025 and lost a further $4.28 billion in the first quarter of 2026, reflecting heavy spending on artificial intelligence infrastructure and expansion projects.
The recent decline has erased much of the gains made by investors who bought shares in the open market after the IPO, although early shareholders and employees continue to hold substantial paper profits.
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The listing has also boosted Musk’s personal fortune, helping cement his status as the world’s richest person and creating thousands of new millionaires among employees and long-term investors.
Market analysts said the stock’s recent weakness reflects a combination of profit-taking and concerns that the company’s lofty valuation may already factor in much of its expected future growth.
Still, many investors remain optimistic that SpaceX’s ambitions in space technology and artificial intelligence could generate significant returns over the long term, keeping the stock firmly in focus on Wall Street.
