SpaceX stock has fallen below $120 in recent trading, marking a sharp retreat from the company’s record-breaking initial public offering just six weeks ago and reflecting mounting pressure on the newly public space company.
The stock, trading under ticker SPCX, has lost roughly 45% from its post-IPO high, according to reporting from the ALREADY_RETRIEVED data. Shares were priced at $135 on June 11, 2026, and began trading the next day, but have since tumbled as operational setbacks and broader market forces weigh on investor sentiment.
The most immediate trigger was SpaceX’s abort of its Starship rocket launch on July 16, when some of the 33 engines failed to ignite during the pre-flight sequence. According to CNBC, the engine ignition failure triggered SpaceX to halt the test launch, and the company targeted a fresh attempt for the following week.
The Starship abort compounded broader post-IPO volatility. SpaceX raised $75 billion in the largest IPO ever recorded, valuing the company at $1.77 trillion, according to Reuters and CNBC reporting from June 2026. Yet history suggests such pullbacks are routine for newly public mega-cap companies.
Research compiled before SpaceX’s debut showed that mega-IPOs typically see average maximum drawdowns of roughly 55% during their first year of trading. Facebook fell 54%, Shopify retreated sharply, and other high-profile debuts saw declines ranging from 40% to 70%, according to analysis from Brownstone Research and other sources cited in June 2026 coverage. Early SpaceX investor Gavin Baker, managing partner of Altreides Management, told CNBC that the drawdown is typical of IPOs and that he wasn’t concerned about the pullback—a view that aligned with historical precedent.
The Lockup Expiration Looming
One factor amplifying near-term uncertainty is the impending expiration of the IPO lockup period. According to Investing.com, approximately $123 billion in shares are set to unlock in early August 2026, when insiders and early investors become eligible to sell. The stock already trades about 42% below its post-IPO high, and additional tranches of shares will keep releasing into December, according to reporting from MSN and other outlets.
Axios reported in mid-July that shares had closed at $131.11, already below the $135 IPO price. The company’s IPO lockup structure allows up to 20% of restricted stock to be released just two trading days after the first earnings report, set for August 4, according to Morningstar reporting from early June.
The combination of operational setbacks, post-IPO volatility typical of mega-cap debuts, and the looming share unlock has created a challenging environment for retail and institutional investors alike. Cathie Wood has continued buying SpaceX as the stock sinks, signaling confidence from some prominent investors that the pullback represents a buying opportunity rather than a fundamental deterioration in the company’s long-term prospects.
Wall Street remains broadly bullish on the long-term thesis. According to MSN, SPCX is rated “Buy” with a 12-month target price of $240.04, implying roughly 94% upside from the current depressed levels—a view that reflects confidence in SpaceX’s Starship program, its satellite internet ambitions, and its emerging role in orbital infrastructure for artificial intelligence compute.
Sources
- Reuters — SpaceX IPO price, lockup structure, and Starship abort details
- CNBC — Engine ignition failure, stock decline, and Gavin Baker commentary
- Investing.com — Lockup expiration timeline and share unlock figures
- Axios — Stock price levels relative to IPO price in mid-July
- Brownstone Research — Historical IPO drawdown data and first-year performance
- Morningstar — IPO lockup structure and early earnings timing
- MSN — Analyst rating and 12-month price target
