SpaceX’s blockbuster stock market debut seems to be losing steam. The company’s shares extended their selloff for a third straight day on Monday, dragging down Elon Musk’s fortune by more than $300 billion from its recent peak and erasing all the gains the stock had made since listing.

According to Forbes estimates, the selloff has also wiped nearly $1 trillion off SpaceX’s market value from its June 16 peak.

Elon Musk’s wealth declines after SpaceX falls below debut closing price

SpaceX shares dropped 16.4% on Monday to below $155, slipping under the stock’s debut closing price of $160. After touching a high of $225.64 on June 16, the stock has now fallen more than 31%.

The sharp drop has taken a major toll on Musk’s wealth. According to Forbes estimates, his net worth has fallen from a record $1.45 trillion to just under $1.1 trillion. Monday’s slide alone wiped out more than $152 billion from his fortune. 

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Musk remains the company’s largest shareholder, holding roughly 38% of SpaceX. His stake includes about 4.8 billion shares and another 350 million stock options with an exercise price of $8.40 per share. 

Nearly $1 trillion wiped from SpaceX’s value 

According to Forbes figures, the sell-off has dramatically reduced SpaceX’s market value. At its June 16 peak, the company was worth around $2.99 trillion. By Monday, that figure had dropped to roughly $2 trillion, meaning nearly $928 billion in market value has been erased in just a few days.

The decline has also changed SpaceX’s standing among the world’s largest companies. The firm briefly overtook Amazon and Microsoft to become the fourth-largest company globally by market capitalisation. It has now slipped to seventh place, sitting behind TSMC, which is valued at about $2.42 trillion. 

MSCI rating and bond plan add to pressure 

Investor sentiment took another hit after MSCI, one of the world’s biggest stock index providers, reportedly assigned SpaceX a CCC rating, the lowest level on its seven-tier sustainability scale. 

MSCI said the company was “lagging its industry” because of its exposure to and handling of “significant” environmental, social and governance (ESG) risks. 

SpaceX also announced on Monday that it plans to issue bonds to raise money and refinance a short-term loan. The move allows the company to secure fresh funding without issuing new shares and diluting existing shareholders. 

Multi-billion-dollar AI deal comes into focus 

Despite the stock’s recent struggles, SpaceX landed a major artificial intelligence-related agreement. According to a CNBC report, the company has signed a computing deal with AI startup Reflection AI that could be worth as much as $6.3 billion.

Under the arrangement, Reflection AI will reportedly pay SpaceX $150 million every month from July 1, 2026, through 2029. In return, the startup will gain access to Nvidia GB300 chips used to train and run advanced AI models. 

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From IPO euphoria to growing concerns 

The recent selloff comes after an extraordinary run-up following SpaceX’s public market debut. The stock had surged as much as 67% above its IPO price of $135 during a three-day rally fueled by strong investor demand.

However, enthusiasm has cooled in recent sessions. Investors have also been digesting the company’s announcement that it would acquire AI coding startup Cursor in an all-stock deal valued at $60 billion.

Because the transaction is being paid for with shares, it will dilute SpaceX’s original IPO valuation of $1.77 trillion by roughly 3.4%.

Disclaimer: This article provides factual analysis only and is not, and should not be construed as, an offer, solicitation, or recommendation to buy or sell securities. Investors must conduct their own independent due diligence and seek advice from a registered financial advisor in the respective jurisdiction.