Elon Musk’s SpaceX loses $400 billion in market value in weeks: What’s driving SPCX stock down?

SpaceX market value crash: Space Exploration Technologies Corp shares (SPCX) have struggled to hold on to their recent gains, wiping out more than $400 billion in market value since early October. The stock fell about 5% on Friday, October 30, taking the company’s valuation below $2 trillion from more than $2.3 trillion on October 6.

The latest decline comes just days after SpaceX shares rallied on stronger-than-expected quarterly results. That jump has since been reversed, with the stock losing more than $250 billion in market value after rising about 8% on October 21, according to a Yahoo Finance report.

SpaceX Stock Falls Below $140 After Share Lockup Ends

A large number of shares became available for sale on October 22, when restrictions on about 1.3 billion SpaceX shares expired. The stock held above $140 in the sessions that followed but slipped below that level on Friday.


The drop has put attention back on how far the shares could fall. A close below $135 would mark their lowest level since August 24, while the next support level sits near the summer low of $107.

A recovery would require SpaceX shares to climb back toward $147, which would put the company’s market value above $2 trillion. The stock would then need to move past its first-day opening price of $150.

Starlink Concerns Add to SpaceX Stock Pressure

The sell-off has unfolded alongside scrutiny in Washington over Starlink service slowdowns in Ukraine. A wider retreat in technology stocks has also weighed on major companies such as Alphabet, Amazon and Meta.

SpaceX has nevertheless held up better than many other publicly traded space companies since its June debut. Most of its peers have lost between 20% and 30% since October 6, while SpaceX shares were down about 16% through Thursday.

The gap has become more noticeable since the share lockup expired. Rocket Lab and AST SpaceMobile gained roughly 10% to 17% between October 22 and Thursday, while SpaceX shares remained largely flat.

The broader weakness across technology stocks has added another challenge as investors reassess the company’s market value.

Starship Flight 15 Could Influence SpaceX Shares

SpaceX’s next major event is expected to be Starship Flight 15 next month. The company plans to attempt to catch both the booster and the spacecraft, making the flight an important milestone to watch.

A successful attempt could help the stock move back above $140. A setback could leave shares vulnerable to another decline toward their summer low.

The direction of AI stocks may prove just as important. SpaceX has become increasingly tied to the artificial intelligence trade, meaning a broader recovery in AI shares could help lift its stock.

Intel’s Weak Forecast Raises Questions About SpaceX Partnership

Intel’s latest earnings report brought little relief to investors looking for stronger signals about its partnership with SpaceX.

Intel reported third quarter revenue of $16.5 billion, edging past analysts’ expectations, while earnings beat forecasts by $0.12 per share. Its outlook for the current quarter was less encouraging.

The company projected fourth quarter earnings of $0.25 per share, it was below Wall Street’s estimate of $0.44. It also forecast revenue of no more than $16 billion, compared with analysts’ expectations of $17.1 billion.

Northland analyst Gus Richard had expected Intel to beat earnings estimates and provide strong guidance. He viewed the partnership between the two companies as a significant catalyst for Intel’s stock, as per The Motley Fool.

The weaker forecast undermined that expectation, adding another concern for investors already selling SpaceX shares.

China Could Complicate Reported SpaceX-Tesla Merger Plans

Uncertainty surrounding a potential merger between SpaceX and Tesla has added another issue for investors to consider.

The Motley Fool reported that Bank of America had raised concerns that Chinese antimonopoly authorities could block the reported deal. The bank pointed to Tesla’s manufacturing operations in Shanghai, which account for half of the electric carmaker’s production, as a possible source of regulatory leverage.

A blocked merger could be a greater concern for Tesla investors, who may expect a premium if the company is acquired. However, the report noted that a setback for Elon Musk’s plans could weigh on both companies.

The merger remains a potential source of uncertainty as SpaceX shares continue to fall.