Space Exploration Technologies Corp shares declined 16.43% during Monday's session, extending a two-day selloff following the company's record-breaking initial public offering (IPO). The stock, which debuted at $135 on June 12, traded near $157 on Tuesday, down roughly 30% from last week's record high of $225. The decline followed the company's debt offering announcement and reflected cooling enthusiasm after the historic IPO earlier this month, contrasting with modest gains in broader U.S. indices.

The pullback comes as the market processes the company's recent $60 billion all-stock deal to acquire AI coding startup Cursor, which resulted in roughly 3.4% dilution for existing shareholders. Prior to the IPO, SpaceX received a governance score equivalent to that of Russia from MSCI's ESG risk framework and scored one out of 10 in MSCI's controversies category, receiving an "orange flag" for indirect involvement in severe ongoing controversies.

Analyst Ratings and Outlook

Keybanc analyst Michael Leshock initiated coverage of SpaceX with a Sector Weight rating on Monday, noting the company is well-positioned to lead space launch and related markets due to its vertically integrated model. Leshock highlighted that Starlink is driving profitable growth, with direct-to-cell service and faster speeds expected to improve through Starship and Starlink V3 satellites in the second half of 2026.

Oppenheimer analyst Tim Horan told CNBC on Monday that SpaceX can keep doing "incredibly creative things" as it expands into AI and uses its vertically integrated model to attack multiple markets. He said the company has doubled its valuation in the past six months by entering the AI market and sees AI as a $25 trillion total addressable market. Horan noted SpaceX's vertical integration gives it an edge because the company is working across satellites, solar panels, chips, data, and both physical and digital AI.

The stock currently carries a Buy rating with an average price forecast of $152.50 across 5 analysts. Recent analyst actions include Oppenheimer raising its forecast to $250.00 on June 18 and CFRA initiating with a Sell rating and a $115.00 target on June 12. Morningstar previously trimmed its fair value estimate to $62 from $63, citing dilution concerns from the Cursor acquisition.

Market Volatility and Commentary

Perella Weinberg advisory partner Walter Isaacson told CNBC on Monday that SpaceX's IPO success shows Elon Musk has built "a real product," not just a high-valuation story. Isaacson said investors are paying for what SpaceX could become, including AI data centers in low Earth orbit, moon landers and direct internet and cell connections from satellites.

CNBC host Jim Cramer stated that SpaceX could not maintain its meme-stock momentum as the rally lost steam and more sellers entered the market. He noted that the stock now has a balanced market of buyers and sellers, making it difficult to sustain meme-driven gains. Susquehanna analyst Chris Murphy estimates a 15% chance that SpaceX could lose half its value over the next three months as options-driven volatility intensifies.

The recent selloff has boosted inverse ETFs, with the Defiance Daily Target 2X Short SpaceX ETF, GraniteShares Inverse SpaceX ETF, and Tradr 2X Short SpaceX Daily ETF all surging nearly 8% on Thursday.

Valuation and Executive Wealth

Despite the recent pullback, the IPO has significantly boosted the net worth of Elon Musk, SpaceX's CEO. According to Forbes, Musk's net worth now stands at approximately $1.2 trillion, largely propelled by the soaring value of SpaceX. Musk owns roughly 38% of the rocket company, including options.

Space Exploration Technologies Corp. saw more than $400 billion in market value disappear just days after its record IPO, prompting economist Mohamed El-Erian to highlight the dramatic split between early winners and late buyers. The company’s stock fell 16.43% on Monday to close at $154.60, extending a sharp pullback from its recent all-time high. The decline ranks as the second-largest one-day value loss for a U.S. company, reducing its market capitalization to roughly $2.04 trillion.

Mohamed El-Erian: ‘Wild’ Difference Between Winners And Losers

Elon Musk’s company priced its IPO at $135 per share on June 12, opened at $150 and ended its first trading day at $160.95. Shares surged to a record high of $225.64 following the announcement of a $60 billion stock transaction to acquire Anysphere, the maker of AI coding tool Cursor. Since then, the stock has retreated sharply. Commenting on the volatility, El-Erian noted that investors who bought at the IPO are up 23%, while those who bought at the high are down almost 25%.

Market Context and Other Movers

The broader market finished mixed, with the Dow Jones Industrial Average gaining 0.29% to close at 51,712.71. The S&P 500 slipped 0.37% to 7,472.79, while the Nasdaq fell 1.3% to end the session at 26,166.60. Micron Technology rose 6.82% to close at $1,211.38, hitting a 52-week high of $1,213.56 ahead of its earnings report. Super Micro Computer increased 15.66% to $35.46 following a product launch and upgrade. Conversely, Netflix fell 5.82% to $72.88, and Palantir Technologies dropped 6.98% to $119.50, both hitting 52-week lows.