• SpaceX shares slid to an all-time low, closing down 3.9% at $110.6, amid a broad sell-off in high-growth tech stocks.
  • The decline comes as investors reassess valuations in the space sector, with rising interest rates and geopolitical uncertainty weighing on sentiment.
  • Analysts point to SpaceX's heavy capital expenditure for Starship and Starlink as near-term headwinds, though long-term prospects remain intact.

Fresh slump for SpaceX

Shares of SpaceX hit a record low on Friday, dropping 3.9% to $110.6, extending a months-long slide that has wiped out more than a third of the company's market value since its public listing via a SPAC merger in early 2025. The decline mirrors a broader rout in technology and space-themed stocks, as investors flee riskier assets amid persistent inflation and hawkish central bank signals.

According to people familiar with the matter, the sell-off has accelerated in recent weeks as several large institutional holders reduced their positions, citing concerns over the company's near-term cash burn. SpaceX is pouring billions into developing its Starship rocket and expanding its Starlink satellite constellation, both of which are expected to require significant funding before generating meaningful returns.

Market and sector headwinds

The broader space sector has come under pressure as the Federal Reserve maintains its tight monetary stance, dimming the outlook for high-valuation stocks. The ARK Space Exploration ETF, a bellwether for the industry, has fallen 22% year-to-date.

“SpaceX is caught in a perfect storm of macro headwinds and company-specific execution risks,” said a senior analyst at a major investment bank, who asked not to be named because he is not authorized to speak publicly. “The market is demanding profitability sooner rather than later.”

Regulatory developments have also added to the gloom. The Federal Communications Commission recently delayed approval for a key Starlink spectrum expansion, citing interference concerns, while the Department of Defense has signaled it may tighten export controls on advanced rocket technology.

Historically volatile

SpaceX has always been a volatile stock, with sharp swings tied to major launch milestones and financing rounds. Its public debut in early 2025 was met with euphoria, pushing shares above $200. But the stock has since trended lower as the initial excitement faded and investors focused on the company’s long path to consistent profitability.

“This is a company at the frontier of innovation, but frontier investments come with frontier risks,” said a portfolio manager at a hedge fund that recently exited its position. “Without a clear timeline to positive free cash flow, it’s hard to justify the current valuation.”

Attempts for comment

SpaceX did not respond to a request for comment. The company has not issued any recent public statements regarding its share price performance.

Correction: An earlier version of this article misstated the date of SpaceX's public listing. It completed its SPAC merger in January 2025, not early 2025. The error has been corrected.