SpaceX stock closed at $119.85 on the 20th (local time), down 3.34%, marking the 10th consecutive day of decline and falling below its IPO price of $135 for the first time since listing last month. The company, which debuted on the New York Stock Exchange in what was described as the largest IPO in human history, has seen its market capitalization drop from a peak of $2.64 trillion recorded on the 16th of last month to approximately $1.5771 trillion, a loss of about $1.0629 trillion (approximately 1,571 trillion won). The stock had surged to $225 intraday shortly after listing last month. SpaceX, which had briefly ranked as the fifth-largest US publicly traded company by market cap after surpassing Amazon last month, has now fallen to eighth place, overtaken by Broadcom and Meta Platforms. Korean retail investors who entered space-themed ETFs heavily weighted in SpaceX are facing mounting losses as the stock correction deepens.
SpaceX Stock Falls Below IPO Price After 10-Day Decline
On the 20th (local time), SpaceX shares closed at $119.85 on the New York Stock Exchange, down 3.34% from the previous trading day. This marked the 10th consecutive trading day of declines. Last week, the stock fell below its IPO price of $135 for the first time since listing, and the decline has continued. The stock had reached an intraday high of $225 shortly after its debut last month.
The company's market capitalization has contracted sharply. SpaceX's current market cap stands at approximately $1.5771 trillion (about 2,331 trillion won), down from the peak of $2.64 trillion recorded on the 16th of last month — a loss of $1.0629 trillion (approximately 1,571 trillion won). SpaceX, which had climbed to fifth place among US listed companies by market cap after surpassing Amazon last month, has now dropped to eighth place, falling behind Broadcom and Meta Platforms.
Korean Space ETFs Record 27–31% Losses This Month
The SpaceX stock decline has directly impacted Korean space-themed exchange-traded funds (ETFs) that hold the stock. TIGER US Space Tech, which holds SpaceX at a 25.16% weighting, recorded the largest loss this month at 31.84%. KODEX US Space Aviation fell 31.28%, and SOL US Space Aviation TOP10 dropped 27.77%. The losses reflect not only SpaceX's decline but also corrections in other space companies such as Redwire held within the same funds.
Individual investor outflows have accelerated as returns plummeted. This month, retail investors net sold approximately 50 billion won from Korean space ETFs holding SpaceX. TIGER US Space Tech alone saw outflows of around 32 billion won. Korean retail investors had been unable to access SpaceX shares at the IPO price, as allocations were not made available domestically, and mounting losses have triggered selling pressure.
SpaceX Faces Valuation Concerns and Operational Setbacks
Excessive valuation and operational concerns are cited as key factors behind the stock's decline. SpaceX's price-to-sales ratio (PSR) approached 100 at one point, meaning its market capitalization was over 100 times its annual revenue — reflecting heavy reliance on future growth expectations already priced into the stock.
Operational setbacks involving the next-generation Starship launch vehicle have added pressure. The 13th test launch scheduled for the 16th was postponed due to partial engine ignition failure. A Falcon 9 rocket launch scheduled for the morning of the 20th was also canceled. Additionally, CEO Elon Musk denied a report about a $52 billion AI server order, calling it "fake news," which dampened expectations for expanded AI infrastructure investment.
Lock-up expiration scheduled for early next month presents another concern. Starting shortly after the second-quarter earnings release, institutional holdings will begin to be unlocked in stages, with a substantial portion of total shares potentially entering the market by year-end. Concerns over additional downward pressure from share supply are weighing on investor sentiment.
Analysts Offer Mixed Views on SpaceX Outlook
Securities analysts are divided on the stock's outlook. Seo Sang-young, a researcher at Mirae Asset Securities, stated, "Anxiety over the supply that will enter after next month's earnings announcement, combined with Musk denying the AI server order report and a partial retreat in expectations for AI infrastructure investment expansion, acted as a burden."
Jeong Eui-hoon, a researcher at Eugene Investment & Securities, commented, "While SpaceX's listing may increase volatility in existing stocks, it could serve as an opportunity to increase interest and capital inflows into the space industry as a whole, requiring a mid- to long-term perspective."
A financial investment industry official remarked, "If Starlink's growth momentum is reconfirmed in next quarter's earnings, upward momentum across the space sector as a whole could recover," adding, "The success or failure of the Starship 13th test launch retry scheduled for the 23rd is expected to be an important variable for restoring investor sentiment."
FAQ
What happened to SpaceX stock on the 20th?
SpaceX stock closed at $119.85 on the 20th (local time), down 3.34%, marking the 10th consecutive day of decline and falling below its IPO price of $135 for the first time since listing last month.
How much market cap has SpaceX lost since its peak?
SpaceX's market capitalization fell from a peak of $2.64 trillion recorded on the 16th of last month to approximately $1.5771 trillion, a loss of about $1.0629 trillion (approximately 1,571 trillion won).
Why did SpaceX stock decline sharply?
The decline is attributed to excessive valuation with a price-to-sales ratio approaching 100, operational setbacks including postponed Starship and Falcon 9 launches on the 16th and 20th, Elon Musk denying a $52 billion AI server order report, and concerns over lock-up expiration scheduled for early next month.
