SpaceX Falls From $2 Trillion High As $400 Billion Wiped Out In One Day. (Image Internet)
New Delhi: Elon Musk-led SpaceX witnessed a sharp market setback on Monday, losing around $400 billion in market value after its shares fell more than 16 per cent. The drop came just days after the company’s blockbuster stock market debut had pushed its valuation above the $2 trillion mark.
SpaceX’s shares closed at $154.60 on Monday, marking one of the steepest single-day declines by market value for a major US company. The fall pulled its market capitalisation down to nearly $2.04 trillion, even as the company remained among the world’s most valuable publicly traded firms.
The decline marked a sudden reversal for a stock that had drawn huge investor attention after its listing. SpaceX had made a strong Wall Street debut earlier this month, with its IPO pricing and early gains placing it among the biggest market listings in history.
The sell-off was triggered by wider pressure on technology and growth stocks. Rising expectations of higher US interest rates made investors cautious about expensive valuations, especially in companies linked to artificial intelligence, space technology and future infrastructure bets.
Higher interest rates usually reduce the appeal of high-growth stocks because investors start demanding stronger near-term earnings and clearer cash flow visibility. That shift appeared to hit SpaceX after the excitement around its IPO had already pushed expectations sharply higher.
SpaceX has been expanding aggressively across launch services, Starlink, Starship and AI-linked infrastructure. The company has also moved to raise funds through the bond market, while reporting a large cash balance after its IPO.
However, investors are now watching whether the company can justify its massive valuation with sustained revenue growth and profitability. Heavy spending on next-generation rockets and advanced computing projects remains central to SpaceX’s long-term strategy, but it also adds pressure on margins.
Despite the latest fall, SpaceX is still valued at more than $2 trillion, showing the scale of investor confidence in Musk’s space ambitions. But Monday’s slide shows that even the most-hyped market debuts can face gravity when rate fears, valuation concerns and profit expectations collide.
