SpaceX shares slip to IPO price ahead of Starship test
The aerospace giant’s valuation has retreated from post-IPO highs, with only 4% of shares in public float contributing to volatility.
SpaceX shares traded at approximately $135 on Wednesday, matching the initial public offering price established in June 2026. The stock dipped below $133 during the session before recovering to close at $135.27, marking a significant decline from the euphoric highs seen in the days following its Nasdaq debut. This price movement coincides with an upcoming test launch of the Starship rocket, which is expected to conclude with an explosion of both the booster and upper stage in the Gulf of Mexico, regardless of flight success.
The company went public on 11 June 2026 via a record-breaking IPO priced at $135, raising $75 billion and valuing the company at approximately $1.77 trillion. In the immediate aftermath of the listing, shares surged to highs above $200, briefly rivaling the valuations of major tech giants such as Amazon and Microsoft. However, the stock has lost value in almost every week since reaching that peak, reflecting a broader deflation in tech sector valuations over the last month.
A primary driver of this volatility is the company’s limited trading float. Only 4% of SpaceX’s total shares are currently trading on the Nasdaq, a constraint that has created wild swings during the first month of trading. This small float, combined with intense scrutiny of CEO Elon Musk’s strategic vision, has led to market scepticism regarding the long-term durability of the stock’s elevated valuation. The company’s bonds, sold in the wake of the IPO, are also experiencing value declines.
The upcoming Starship test serves as another early stress test for investor sentiment. This will be the first Starship flight since a booster failure occurred in May. The vehicle is still in development, adhering to a "fly, fail, fix" approach that makes it prone to setbacks. For this specific test, neither the booster nor the upper stage will attempt to recover; both are scheduled to simulate a landing in the Gulf of Mexico, resulting in an explosion of both parts even if the flight plan is executed without error.
SpaceX’s market performance is being closely watched as a gauge for other major technology companies, including Anthropic and OpenAI, which have filed confidentially for IPOs. While neither has set a date to go public, the trajectory of SpaceX’s stock provides a benchmark for how investors view high-profile tech listings. The outcome of the Starship test and the broader market reaction will likely influence the timing and pricing of these future public offerings.
