SpaceX Stock Crashes to $158, Wiping Out $200B in Value - What’s Behind the Drop

Shares of SpaceX, the private launch company owned by Elon Musk, plunged dramatically last week, echoing the erratic descent of a Starship test vehicle that struggled to stay oriented during re‑entry.

On Monday the stock recorded its steepest one‑day drop, sliding more than 13 percent to around $158 by mid‑afternoon, a sharp fall from the peak of just over $225 reached on June 16 and barely above the $150 opening price.

The tumble erased over $200 billion in market value, a severe hit for investors who bought in during the recent post‑IPO rally.

Even a recently announced partnership with the open‑source AI firm Reflection, valued at roughly $6.3 billion, failed to revive market sentiment, as retail shareholders began to question the logic of a combined space‑and‑AI conglomerate.

SEC filings released ahead of the offering highlighted several risk factors, including the company’s ongoing burn of billions of dollars in cash and an uncertain path to profitability.

Musk’s history of delivering on ambitious promises is mixed at best, casting doubt on his plan to deploy a massive constellation of orbital data centers—a concept that analysts have already flagged as financially and technically dubious.

In short, investing in SpaceX currently reflects confidence in Musk personally rather than any solid business fundamentals, and market opinion on his leadership can swing widely.

Nevertheless, the firm reported a cash balance just above $100 billion, giving it ample liquidity to cover short‑term bridge financing and avoid an immediate financial crisis.