🕒 Created · Updated

SpaceX shares fell below its initial public offering price as new competition and share unlocks hit the market.

SpaceX shares fell below its $135 initial public offering price this week, dropping to approximately $136. The decline follows a significant share unlock where 319 million shares held by early employees and investors became eligible to trade. This supply increase occurred alongside rising competition from Chinese startup LandSpace, which recently achieved a milestone by landing the first stage of its Zhuque-3 rocket on a land pad. While CEO Elon Musk provided updates on the Starship timeline, the stock faced bearish calls from analysts. Financial commentator Suze Orman suggested investors use dollar cost averaging to enter the stock, though critics note that this strategy manages timing risk rather than valuation risk for a single, capital-heavy IPO. Despite a quarterly revenue beat of $7.81 billion, the company continues to burn significant cash on AI infrastructure and data centers, positioning the stock as a venture-style bet rather than a stable bond substitute.

Sources