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SpaceX Is Down 19% From Its IPO Price. Tesla's History Suggests This May Happen Next

The article argues that SpaceX, now trading about 19% below its IPO price, may follow a path similar to Tesla’s early post-IPO volatility. It notes that Tesla fell about 18% shortly after going public in 2010 before rebounding to finish its first year up 18%. The comparison hinges on SpaceX’s long-term growth catalysts: Starship, a fully reusable next-gen rocket, and Starlink expansion, both of which could lower launch costs, improve margins, and accelerate satellite deployment. However, the piece is cautious: SpaceX is not consistently profitable, revenue growth may not justify its $1.4 trillion valuation, and AI-related investments could pressure the bottom line further. The author concludes that while a rebound is possible if SpaceX makes meaningful Starship progress, the stock may keep falling over the next year due to valuation and competition risks.

Category

Tesla

Sentiment

Mixed

Event

Market commentary

Reading time

1 min