SpaceX loses over $400 billion in value as shares slide below $2 trillion

Valuation drops after recent gains unwind

The Economic Times reports that SpaceX, formally Space Exploration Technologies Corp, has given up more than $400 billion in market value since early October. On Friday, Oct. 30, SPCX fell about 5%, taking the company’s valuation below $2 trillion after it had been above $2.3 trillion on Oct. 6.

The article says the latest decline came only days after the shares rose on stronger-than-expected quarterly results. That move has since been erased. According to a Yahoo Finance report cited by The Economic Times, the stock lost more than $250 billion in value after rising about 8% on Oct. 21.

Share lockup expiration added selling pressure

The Economic Times says a large supply of shares became available for sale on Oct. 22, when restrictions on about 1.3 billion SpaceX shares expired. In the sessions that followed, the stock stayed above $140, but it slipped below that level on Friday.

The article says investors are now focused on how much further the shares could fall. A close below $135 would be the lowest since Aug. 24, while the next support level is near the summer low of $107. For a recovery, the stock would need to move back toward $147, which would put SpaceX above a $2 trillion market value. It would then need to rise above its first-day opening price of $150.

Starlink scrutiny and broader tech weakness weigh on the stock

The Economic Times says the sell-off has coincided with scrutiny in Washington over Starlink service slowdowns in Ukraine. It also says a broader pullback in technology stocks has affected large companies including Alphabet, Amazon and Meta.

Even so, the article says SpaceX has performed better than many publicly traded space companies since its June debut. Most peers have fallen between 20% and 30% since Oct. 6, while SpaceX was down about 16% through Thursday. The gap became more visible after the lockup expired, with Rocket Lab and AST SpaceMobile gaining about 10% to 17% between Oct. 22 and Thursday while SpaceX stayed mostly flat.

Upcoming milestones and other investor concerns

The Economic Times says SpaceX’s next major event is expected to be Starship Flight 15 next month, when the company plans to try catching both the booster and the spacecraft. The article says a successful flight could help the stock recover above $140, while a setback could leave it exposed to another decline toward its summer low.

The report also says the direction of AI stocks may matter because SpaceX has become more tied to the artificial intelligence trade. A broader rebound in AI shares could help support the stock.

Intel results and merger uncertainty add to uncertainty

The article says Intel’s latest earnings report did not reassure investors looking for signs tied to its partnership with SpaceX. Intel reported third-quarter revenue of $16.5 billion, above estimates, and earnings beat forecasts by $0.12 per share. But its fourth-quarter outlook was weaker: it projected earnings of $0.25 per share versus an estimate of $0.44, and revenue of no more than $16 billion versus expectations of $17.1 billion.

The Economic Times says Northland analyst Gus Richard had expected Intel to beat estimates and provide strong guidance, viewing the partnership as an important catalyst for Intel stock, according to The Motley Fool. The weaker outlook undercut that view and added another concern for SpaceX shareholders.

The article also says uncertainty remains around a reported SpaceX-Tesla merger. According to The Motley Fool, Bank of America raised concerns that Chinese antimonopoly authorities could block the deal, citing Tesla’s Shanghai operations as possible regulatory leverage. The report says a blocked merger would be a bigger issue for Tesla investors, but it could also weigh on both companies and on Elon Musk’s plans.