SpaceX stock plunges after record IPO

SpaceX, Elon Musk's AI and space infrastructure conglomerate, completed the largest IPO in history on June 12, 2026, raising $85.7 billion and reaching a valuation of nearly $3 trillion. However, the stock has since plunged over 50% from its all-time high of $225.64, closing at $113.37 on July 24. The decline is attributed to valuation concerns (trading at 38-42 times sales), the upcoming accelerated insider share unlock schedule, and the fading of IPO momentum. SpaceX's first quarterly report as a public company was released on August 4, and the first insider unlock event occurred on August 6, allowing insiders to sell up to 20% of early release-eligible shares, representing approximately 911.5 million shares and up to $99 billion in potential selling pressure. Historical data from Flushing Financial Corporation shows the average year-one max drawdown for tech IPOs is 55%, and analysts suggest further downside is possible. SpaceX's AI subsidiary Xai has secured compute deals with Alphabet and Anthropic, but the company is not yet close to recurring profits.