SpaceX (SPCX) shares fell 16.4% on June 22, closing at $154.6 per share and erasing over $400 billion in market capitalization in a single session. The decline stemmed from investor concerns over the company's plan to issue approximately $20 billion in investment-grade bonds, ongoing losses in its AI business, and valuation pressures following its initial public offering. The commercial aerospace company went public on June 12 on the Nasdaq with an IPO valuation of approximately $1.77 trillion, reaching a market cap near $3 trillion before the recent selloff.
SpaceX Stock Falls 31.5% From June 16 Peak
SpaceX stock closed at $154.6 per share on June 22, down from an intraday high of $225.64 per share recorded on June 16. The cumulative decline from the peak represents a 31.5% drawdown. The selloff occurred less than two weeks after the company's June 12 IPO on the Nasdaq under the ticker symbol SPCX. On its first trading day, SpaceX shares rose approximately 20% and continued climbing in subsequent sessions.
SpaceX Plans $20 Billion Bond Issuance
SpaceX disclosed plans to issue approximately $20 billion in investment-grade bonds. According to the company's latest filing, proceeds will primarily be used to repay bridge loans formed in connection with previous xAI-related transactions. The financing announcement came less than two weeks after the company's IPO, prompting questions from some investors about rising capital expenditure pressures.
xAI Losses Exceeded $6 Billion in 2025
SpaceX recorded a net loss of approximately $4.9 billion in 2025, according to data disclosed in its prospectus. Losses from the company's artificial intelligence business xAI exceeded $6 billion during the same period. In the first quarter, SpaceX's capital expenditures surpassed $10 billion, with a significant portion allocated to AI computing infrastructure construction. Management has emphasized that artificial intelligence will serve as a key growth engine, though the timeline for converting these investments into actual profits remains under market scrutiny.
Reuters reported that Wall Street discussions regarding return on AI investments among large technology companies have intensified recently. Stock prices of several tech giants—including Alphabet (Google's parent company), Amazon, and Meta (Facebook's parent company)—have been affected by related concerns.
SpaceX Shares Remain 15% Above IPO Price
Despite the recent decline, SpaceX shares closed at $154.6 on June 22, approximately 15% above the IPO price of $135 per share. According to Reuters calculations, SpaceX's price-to-sales ratio reached over 100 times at peak market capitalization, significantly higher than most large technology companies and aerospace firms. Foreign media noted that as IPO enthusiasm cools, the market is reassessing the appropriate valuation range for SpaceX's combined AI and aerospace narrative. The company's capital expenditures, cash flow, and progress in commercializing its AI business in coming quarters may determine whether the stock price can return above $200.
FAQ
What caused SpaceX stock to fall on June 22?
SpaceX stock fell 16.4% on June 22 due to investor concerns over the company's plan to issue approximately $20 billion in investment-grade bonds, ongoing losses in its xAI artificial intelligence business that exceeded $6 billion in 2025, and valuation pressures following its recent IPO.
How much has SpaceX stock declined from its peak?
SpaceX stock closed at $154.6 per share on June 22, down 31.5% from its intraday high of $225.64 per share recorded on June 16. The single-day decline on June 22 erased over $400 billion in market capitalization.
When did SpaceX go public and at what price?
SpaceX went public on June 12 on the Nasdaq under the ticker symbol SPCX with an IPO price of $135 per share and an IPO valuation of approximately $1.77 trillion. Despite the recent decline, the stock closed at $154.6 on June 22, approximately 15% above the IPO price.
