SpaceX Shares Drop 5.5% After Post-IPO Rally

SpaceX shares fell 5.5% to $190.80 on Wednesday after earlier rising about 50% above the $135 IPO price. At Tuesday’s close the company’s market value reached about $2.7 trillion, briefly placing it ahead of some of the largest listed firms.

The SPCX ticker has drawn strong retail interest. Vanda Research reported that retail investors bought $144.6 million of SPCX on Tuesday and $369.8 million across the first three trading sessions, making SpaceX the most-purchased stock by retail traders over that period. The firm wrote, “We’re running out of superlatives to describe retail enthusiasm for SpaceX.”

Derivatives activity was heavy. Nearly one million SpaceX call options changed hands on Tuesday, ranking the stock among the market’s most actively traded options. Much of the trading concentrated on call contracts, including large bets on July expirations with strike prices well above current market levels.

Financial results released for recent periods show operating losses. SpaceX reported a net loss of $4.9 billion in 2025 and a further $4.3 billion loss in the first quarter of 2026.

Share availability in the market is limited. The IPO sold 555.6 million shares, about 5% of total outstanding stock, and an additional 83.3 million could enter through an underwriters’ option. Morningstar data indicate roughly 911 million insider shares could become eligible for sale shortly after the company’s first earnings report, which is expected in early August. Insider selling remains restricted for now and many institutional IPO participants have retained their allocations.

SpaceX is scheduled for inclusion in the Nasdaq-100, FTSE Russell and MSCI indexes in the coming weeks, which can generate passive fund flows tied to index additions. George Karamanos of Rothschild & Co. wrote that passive inflows related to index inclusion may continue to support demand, reflecting household savings patterns and asset allocation decisions.

Analysts at Renaissance Macro Research used the phrase “hype tax” to describe the tendency of some new listings to lose momentum after the debut. Their analysis found a median one-year return of -15.6% from the opening trade and that 8 of 20 recent high-profile IPOs posted gains after one year.

Market participants have pointed to heavy retail buying, elevated options volume and the upcoming eligibility of a large block of insider shares as factors that could influence trading patterns and volatility as SpaceX settles into life as a public company.