Shares of SpaceX rebounded on Tuesday following a sharp sell-off that erased more than $1 trillion in market value within a week, marking one of the most volatile episodes for a newly listed mega-cap stock. The technology and aerospace company’s shares hit an intraday low of $147, down roughly 35% from their recent peak of $225. This decline reduced SpaceX's market capitalization from $2.97 trillion at its highest point to approximately $1.93 trillion.
The steep drop also had a significant impact on founder Elon Musk’s personal wealth. Once the world’s first trillionaire upon SpaceX's recent initial public offering (IPO) on the Nasdaq, Musk’s net worth fell from an estimated $1.45 trillion to about $1.1 trillion, representing what Forbes described as the largest loss of personal wealth in history.
Despite the earlier losses, SpaceX shares recovered modestly by the close of trading, finishing 0.9% higher at $156—above the IPO price of $135. This rebound occurred amid a broader decline in global technology stocks and turbulence in financial markets fueled by concerns over stretched valuations and uncertainty about future interest rate hikes by the U.S. Federal Reserve, which aims to manage inflation.
The sell-off was not confined to SpaceX. Major semiconductor companies experienced sharp declines, with Micron Technology shares falling 13%, Qualcomm down 8%, and Nvidia off 4% during the same trading session. European markets also showed weakness, led by a 1% drop in Germany’s DAX and a 0.7% decline in France’s CAC 40. In London, the FTSE 100 edged down slightly by 0.09%, closing at 10,428.85 points. Asian markets saw notable losses as well, with South Korea’s Kospi plunging 10%, while chipmakers SK Hynix and Samsung fell by 12.5% and 12.2%, respectively.
Market analysts highlighted the role of SpaceX’s extreme price swings in amplifying sector-wide volatility. Alex Rudolph, chief technical analyst at broker IG, noted that the rapid 30% decline from SpaceX’s post-IPO peak was among the most dramatic reversals seen in recent times, influencing broader technology stock performance. Daniela Hathorn, a senior market analyst at Capital.com, attributed the sharp pullback to a combination of profit-taking, reassessment of the company’s valuation, and the unwinding of bullish investor positions following one of the most highly anticipated IPOs in recent years.
The episode underscores ongoing market sensitivity to high valuations in the technology sector and investor caution amid evolving economic and monetary policy conditions.