Launch delays and lifting of restrictions add pressure as SpaceX's stock (SPCX.US) plunges, causing its market value to evaporate by trillions of dollars from its peak.

SpaceX's stock price plummeted significantly on Friday, with a market value of over $1 trillion evaporated from its historical high. Setbacks in rocket launches, valuation pressures, and the gradual lifting of future restricted shares are weakening investors' enthusiasm for this aerospace and artificial intelligence giant. In the early trading session in the U.S., SpaceX's stock price dropped by 6.9% to $122.12 per share, before narrowing the decline. At the lowest point during the trading session, the company's market value was around $1.61 trillion, a significant drop from $2.64 trillion at the close on June 16. June 16 was the third trading day after SpaceX went public. The company, led by Tesla, Inc. (TSLA.US) CEO Elon Musk, officially named Space Exploration Technologies Corp., saw its stock price surge after its record-breaking IPO but has since been on a continuous decline, falling below the IPO price of $135 per share. Earlier, SpaceX had to cancel the "Starship" rocket launch due to engine problems, further dampening market sentiment. Joe Gilbert, portfolio manager at Integrity Asset Management, noted that while the timing of the launch failure was not ideal, launch failures are always a risk that investors in SpaceX must face. He pointed out that as optimism in the space industry gradually cools off, investors are reducing risk exposure and reevaluating company valuations, putting pressure on high valuation multiples. SpaceX stated that after canceling the launch mission on Thursday, the company will attempt to launch the "Starship" again. Musk later announced on the social platform X that the company will replace two "Raptor" engines, possibly delaying the next launch until early next week. In a client report released on Friday, Raymond James analyst Brian Gesuale stated that similar incidents will continue to be part of SpaceX's aggressive research and development model for the "Starship." SpaceX is constantly pushing the limits of rocket reusability, payload capacity, and high-frequency launch rates to support the deployment of "Starlink V3" and NASA's future "Artemis" missions. Gesuale pointed out that even if the launch is postponed until next week, the gap between the two "Starship" flights is expected to be reduced from 221 days to less than 60 days. Earlier this month, SpaceX was added to the Nasdaq 100 index and received bullish ratings from several Wall Street firms. Currently, analysts have an average 12-month target price of $235.34 for the stock, significantly higher than the current price. However, the company still faces potential selling pressure from extended lock-up periods for insiders. Over the coming months, a portion of restricted shares will gradually enter the market, potentially increasing stock supply and further impacting valuation. Mark Malek, Chief Investment Officer at Siebert Financial, stated that many investors may have reevaluated their initial investment logic considering the upcoming unlocking of restricted shares. Potential buyers who were previously waiting on the sidelines may continue to wait for lower entry points as the possibility of lower prices increases with valuations returning to reasonable levels. The continued decline in SpaceX's stock price may also impact the AI-related IPO frenzy. Artificial intelligence is one of the core themes in SpaceX's IPO pitch, as the company plans to build data centers in space to dominate the potential $26.5 trillion market. SpaceX's record-breaking IPO had significantly boosted Wall Street's equity financing business. In the second quarter, large investment banks saw their highest stock issuance-related revenue since 2021 through underwriting and advisory services. However, the drop in SpaceX's stock price below the IPO price may prompt a reevaluation of the prospects for high-valuation tech and AI companies going public.