SpaceX Loses Record $600 Billion in Market Value Amid Tech Rout

SpaceX's valuation crashed by $600 billion over three days as the tech sector faced a renewed downturn. This significant decline is part of a broader market slide affecting various tech stocks. The sell-off is linked to investor reassessment of AI spending. Despite initial fears, SpaceX has faced significant valuation losses of $600 billion following its record IPO, and it is unclear what this may signify for Elon Musk and company.

SpaceX (SPCX) has shed more than $600 billion in market capitalization over a three-day period following a spectacular IPO, raising fresh questions about investor appetite for unprofitable AI-era growth companies at peak valuations. The company priced its shares at $135 on June 12 — the largest IPO in recorded history at $75 billion raised — opened at $150, and surged to an all-time high of $225.64 on June 16, briefly vaulting SpaceX past Amazon and Microsoft in market cap to approximately $2.95 trillion.

The selloff was triggered by a jarring disclosure just 10 days after the equity raise: SpaceX filed with the SEC to issue at least $20 billion in senior unsecured investment-grade bonds, implying the $75 billion IPO haul was insufficient to fund its combined AI infrastructure, Starlink satellite constellation expansion, and Starship development ambitions. SpaceX reported a net loss of $4.9 billion in 2025 and $4.28 billion in Q1 2026, a cash burn profile that became difficult to justify at a $2.95 trillion valuation. Macro headwinds compounded the selloff: new Federal Reserve Chair Kevin Warsh's hawkish inflation stance has reset rate expectations higher, compressing multiples on unprofitable growth names across the board.

The June 23 session saw SPCX fall approximately 16% intraday, the second-largest single-day market cap destruction for any stock on record, before settling at approximately $164 — still above the $135 offering price but well off the peak. The episode crystallizes a tension at the core of the AI infrastructure investment cycle: the same capital intensity that makes these businesses compelling long-term assets demands a tolerance for near-term losses and dilution that markets are increasingly reassessing.