SpaceX Rebounds After Massive Selloff as Investors Weigh Valuation Risks
SpaceX shares moved higher on Tuesday after a sharp decline in the previous session briefly pushed the company’s market value below the $2 trillion mark.
The stock rose 3.4% to $159.90 after falling earlier in the trading session. SpaceX would need to remain below approximately $151.70 for its market capitalization to stay under the $2 trillion threshold.
The rebound follows a brutal selloff on Monday when the stock plunged 16%, erasing roughly $401 billion in market value. According to market data, the decline marked one of the largest single-day losses ever recorded by a U.S. company.
Investor sentiment weakened after SpaceX announced plans to issue its first investment-grade bond offering. The company intends to use the proceeds to repay borrowings under its bridge loan facility and support general corporate purposes.
The decline pushed shares below their June 12 closing level following the company’s highly anticipated public debut. Despite the volatility, several investors continue to view the pullback as a buying opportunity.
ARK Invest, led by Cathie Wood, purchased approximately 210,000 shares of SpaceX across four exchange-traded funds. The investment was valued at more than $32 million based on Monday’s closing price, highlighting continued confidence in the company’s long-term growth prospects.
However, not all analysts are convinced. Susquehanna analyst Chuck Minervino initiated coverage with a Neutral rating and a $170 price target, arguing that current valuations already reflect aggressive assumptions for future revenue and earnings growth.
Analysts note that SpaceX operates in several emerging markets, including artificial intelligence infrastructure and space-based data centers, which remain largely unproven. This creates a wide range of possible outcomes for the company’s future performance.
At current levels, SpaceX trades at approximately 56 times expected 2026 sales, while analysts do not anticipate the company achieving full-year profitability until 2028.
Additional concerns include the possibility of slowing AI spending by major technology companies such as Microsoft, Google, and Amazon. Rising interest rates also pose a challenge for high-growth companies, as higher borrowing costs reduce the value of future earnings.
Although Tuesday’s rebound helped defend SpaceX’s $2 trillion valuation, investors remain divided over how to value one of the market’s most ambitious and speculative growth companies.
As SpaceX continues expanding its presence in space technology, artificial intelligence, and advanced infrastructure, the stock is likely to remain highly volatile while investors balance its enormous growth potential against significant execution and valuation risks.
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