The initial frenzy surrounding SpaceX’s landmark public listing has given way to a sharp correction, as a confluence of macro pressure, a blockbuster all-stock acquisition, and the debut of options trading conspire to test the company’s $2.5 trillion valuation. In just 48 hours, the stock shed more than 11%, wiping out roughly $150 billion in market capitalization.
The sell-off accelerated Thursday, with shares sliding 6.5% to $178.50. Retail investor enthusiasm, which had poured in heavily during the first days of trading, has cooled dramatically. The stock’s thin free float has amplified the swings, turning what was a euphoric debut into a volatile tug-of-war.
Adding to the pressure, the macroeconomic backdrop turned hostile midweek. Federal Reserve board member Kevin Warsh signaled a hardline monetary stance on Wednesday, with policymakers now anticipating at least one more rate hike in 2026. Such hawkish rhetoric typically weighs on richly valued technology names, and SpaceX was no exception.
Compounding the macro headwind is a massive corporate move that has unnerved some shareholders. SpaceX agreed to acquire AI developer Anysphere — creator of the coding assistant “Cursor” — for $60 billion. The deal will be financed entirely with SpaceX stock, a dilution that has created immediate selling pressure as existing holders digest the new share overhang.
The launch of options trading on June 16 added yet another layer of complexity to the price discovery process. More than 1.7 million contracts changed hands on the first day alone. While early activity was dominated by bullish calls, by the close puts had swelled to 44% of total volume. The arrival of derivatives has altered market structure significantly: investors can now hedge downside risk without selling the underlying shares, a dynamic that tends to increase intraday volatility.
Should investors sell immediately? Or is it worth buying SpaceX?
Despite the correction, the stock remains more than 40% above its initial public offering price of $135, set in mid-June. Trading volume has been exceptionally high, with over 272 million shares changing hands in recent sessions. The company’s market capitalization still hovers at roughly $2.5 trillion.
Meanwhile, SpaceX is making moves to strengthen its governance. Roelof Botha, former managing partner at Sequoia Capital, has joined the board as an independent member and will also sit on the audit committee. His appointment comes as investors demand greater oversight following the record-breaking listing. Botha’s term runs until the next annual shareholder meeting.
Operationally, the business continues to hum. A Falcon 9 rocket is scheduled to launch from California on Friday, carrying the NROL-147 mission with a payload for national security. For now, attention shifts back to the core business — but the market is still grappling with a number of unresolved questions.
One of the biggest tests lies ahead: the expiration of insider lock-up periods. Once those restrictions lift, existing shareholders will have the opportunity to sell their stakes into the open market, potentially adding further supply. A quick entry into the S&P 500 remains off the table for now, as S&P Dow Jones Indices requires at least one year of public trading before a company can be considered for inclusion. For a stock that has already experienced a dizzying first week, the next few months promise to be anything but calm.
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