SpaceX Share Price Slides to a Record Low as IPO Euphoria Fades

• SpaceX stock falls as the SpaceX IPO buzz fades, with the SpaceX share price dropping amid SpaceX stock valuation concerns
• xAI losses, lockup expirations, and rising competition are weighing on investor sentiment
• Despite the pullback, TipRanks forecasts the stock could rebound to around $246

The SpaceX IPO euphoria seems to be fading as the latest SpaceX share price statistics have reported negative numbers. The stock is now down significantly from its peak, dropping nearly 7% to stabilize at $137. Hyped at its launch earlier, the SpaceX IPO buzz ended up catapulting its price to $196 at its debut. Moreover, the SpaceX stock peaked at $245 in June but is now sitting at a mellow price range of $137. Why is the SpaceX stock falling?

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SpaceX Hype Levels: What’s Happening To Its SpaceX Share Prices?

The SpaceX stock has tumbled dramatically, hitting its lowest of $137. There are multiple factors contributing to this fall. The SpaceX stock has plummeted primarily due to the company’s AI division extending losses, negatively influencing trader sentiment. 

XAi, the AI domain of the ecosystem, had reported losses worth $4.9B for the year 2025. This was the time when SpaceX merged with XAi, triggering the sell-off. Starlink is playing a crucial role in generating more income for the Musk ecosystem of companies, but XAi erasing profits ticked off the customer sentiment mostly. 

Moreover, lockup expiration, revaluations of SpaceX valuations, and emerging competition from China are some of the key elements weighing on SpaceX share prices. 

“The issue is public-market pricing. SpaceX came public with huge expectations, and now the market is asking whether the IPO price already pulled too much of the future forward. That’s why even good news, like FAA clearance for the next Starship test, isn’t enough to lift the stock.” 

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Can SpaceX Price Still Rise?

While the market uncertainty is also choking the SpaceX share price, SpaceX stock continues to draw heavy consumer attention.  ArkInvest’s Cathie Wood has recently purchased $21M worth of SpaceX stock. Moreover, Congress members Rep. Dan Meuser, R-Pa., and Rep. Gil Cisneros, D-Calif have also purchased significant SpaceX shares. Despite the skepticism regarding the SpaceX stock valuation, the investor sentiment continues to support the asset. 

Per TipRanks, the SpaceX IPO has certainly helped fix the asset’s trajectory for the long term. The platform predicts SpaceX’s share price to hit $245 in the coming months. 

“The average price target for SpaceX is 245.96. This is based on 27 Wall Street analysts’ 12-month price targets, issued in the past 3 months. The highest analyst price target is $800.00; the lowest forecast is $115.00. The average price target represents a 76.77% increase from the current price of $139.14.”

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