SpaceX shares dropped again early Monday, and investors are wondering when the stock’s long decline will stop.
Shares of Elon Musk’s rocket and AI company fell 0.6% in premarket trading, while major index futures showed small gains.
Even with a better start to the month, the stock is still struggling. It began the session about 20% below its IPO price, 46% below its record closing high, and 52% below its all-time intraday high. By Friday, shares had dropped for three days in a row and had fallen on 17 out of 22 trading days in July, with no back-to-back gains. The stock lost 34% in July, marking four straight weeks of losses.
At its highest point during the day, SpaceX was valued at about $3 trillion. On Monday morning, the premarket price suggested a value of around $1.4 trillion. Investors are still concerned about the stock’s high valuation. It trades at about 35 times estimated 2026 sales, which is much higher than Alphabet’s 9 times sales, even though SpaceX is expected to grow faster.
Investors are also paying attention to the upcoming end of the post-IPO share lockup. About 912 million shares held by early investors and insiders will soon be available for trading. The chance of more shares being sold has made some investors cautious, which has added to the stock’s decline since there is not much buying interest.
SpaceX will report its second-quarter earnings on Tuesday, August 4. A strong report could help steady the stock, but for now, investors have to wait and see what happens.
