SpaceX shares fell for a third straight session on June 22, wiping out about $900 billion in market value, including a single-day loss of $400 billion. The stock dropped 16.43%, its steepest decline since listing, falling below its first-day close of $160.95 and briefly dipping under $150 in after-hours trading.
The selloff was driven by a combination of operational and financial concerns, including a recent Starship test explosion and a newly announced $20 billion debt plan that unsettled markets already under pressure from a broader tech downturn.
Test explosion raises operational risks
The decline followed a June 18 Starship test failure during a static fire in which booster No. 36 exploded, producing a large fireball that destroyed ground facilities. No injuries were reported, but the incident has been described by oversight authorities as the most severe on-site accident to date.
The failure has intensified scrutiny of SpaceX’s development timeline and added uncertainty to a business model heavily tied to large-scale, capital-intensive projects.
Debt plan sparks liquidity questions
On June 22, SpaceX said it plans to raise at least $20 billion through senior unsecured bonds, primarily to repay a bridge loan linked to its February acquisition of xAI. Filings show additional funds will go toward corporate expenses and acquisition-related debt costs.
The move surprised analysts, given the company had already raised $85.7 billion in its IPO and reported $100.8 billion in cash and equivalents. Market watchers said the financing signals that high spending on space and AI infrastructure may be straining liquidity despite strong cash reserves.
Global tech weakness adds pressure
The decline in SpaceX shares coincided with a broader selloff in global technology stocks, particularly in AI-related sectors. South Korea’s KOSPI index dropped 9%, while Samsung Electronics and SK Hynix each fell more than 12%. Hong Kong-based MINIMAX slid 15%.
Analysts attribute the downturn to growing concerns that heavy investment in AI infrastructure may take longer than expected to generate returns. SpaceX, with significant commitments to both satellite networks and AI development, has been grouped with other high-spending technology firms facing similar doubts.
Sentiment weakens as trading dynamics shift
Retail activity has shown signs of cooling after strong early demand. Data from Vanda Track showed retail traders purchased $405 million worth of SPCX shares in the first five sessions, exceeding combined purchases of other major U.S. tech stocks during that period.
Options data also points to rising caution, with the put-to-call ratio climbing to 1.07. At the same time, only about 5% of shares are currently tradable, drawing attention to a scheduled unlock of 20% of shares following second-quarter results in August.
If pricing conditions are met, an additional 10% could unlock, potentially increasing tradable shares to 44% by early September and significantly expanding available supply.
Outlook remains uncertain amid valuation debate
A potential near-term catalyst is SpaceX’s eligibility for inclusion in the Nasdaq-100 index in July, though recent losses have tempered expectations. Analysts said volatility is likely to persist until clearer financial data becomes available.
Morningstar slightly reduced its fair value estimate to $62 per share, while KeyBanc assigned a neutral rating, noting that current pricing already reflects projected growth.
ARK Invest added approximately 210,000 shares on June 22, building on its existing position. Chief executive Cathie Wood has previously projected the company’s valuation could reach $2.5 trillion by 2030, underscoring the divide between long-term optimism and near-term caution.
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