SpaceX Stock Slumps Below IPO Price Amid Intense Investor Debate

Shares of SpaceX are facing a rough ride following their June 12, 2026 debut. After peaking at 225 dollars, the stock has slid to approximately 115 dollars, which sits well below the original IPO price of 135 dollars. This performance has turned the company into one of the most debated assets on Wall Street.

Elon Musk remains confident in the company long term vision, specifically highlighting the growth of Starlink and the Starship program. Musk has taken a firm stance against short sellers, who currently control about 17 percent of the tradable float. He maintains that the company is on a trajectory to see massive value creation as these core projects mature.

On the other side of the aisle, critics like former hedge fund manager Whitney Tilson argue the stock remains significantly overvalued. Tilson suggests that despite the recent price drop, the current market valuation still does not align with the company financials. He views the gap between the current price and future revenue potential as far too wide for a sound investment.

Investors are now looking toward the August 4 earnings report for more clarity. While revenue reached 18.7 billion dollars in 2025, the company continues to burn through significant cash. Whether the stock settles into a recovery or falls further will likely depend on how management addresses these fundamental concerns in their upcoming update.