Emerging
Jun 18, 20261
56%
SpaceX Stock Plunges Over 20% After $60 Billion Cursor Acquisition Triggers Market Selloff
SpaceX stock fell over 20% from its Tuesday peak of $225 to just under $179, erasing approximately $620 billion in market value. The decline was triggered by investor concerns over the company's $60 billion all-stock acquisition of AI startup Cursor, which represents a 3.4% share dilution and has sparked debate among analysts over the company's valuation and strategic direction.
Quick Facts
Who
SpaceX
What
SpaceX stock declined 6% on Thursday
When
Tuesday
Where
SpaceX
- SpaceX stock declined 6% on Thursday
- SpaceX announced $60 billion all-stock acquisition of Cursor
- Market value erased $620 billion since peak
- SpaceX dropped from 4th to 7th largest company by market cap
- Option trading debuted Tuesday for SpaceX
SpaceX shares experienced a steep decline on Thursday, falling more than 6% to just under $179, extending Wednesday's near 5% drop and a cumulative 20% decline since reaching a peak above $225 on Tuesday. The selloff has erased approximately $620 billion in market value, reducing SpaceX's valuation from roughly $2.99 trillion to $2.37 trillion and dropping the company from the world's fourth-largest to seventh-largest by market capitalization.
The sharp correction follows SpaceX's announcement on Tuesday of a $60 billion all-stock acquisition of Cursor, an AI coding startup. The deal represents a 3.4% dilution of SpaceX's shares based on its $1.77 trillion IPO valuation, sparking significant investor concern about the company's capital allocation and future profitability. Morningstar analysts lowered their fair value estimate for SpaceX from $63 to $62, warning of sizable share dilution and projecting a best-case scenario valuation of $169 per share only if SpaceX's AI revenue improves substantially.
Despite analyst concerns about overvaluation, opinions on the Cursor deal remain divided. Oppenheimer analyst Timothy Horan defended the acquisition, arguing it could boost shares to $250 by year-end, up from an earlier projection of $190, citing potential synergies including Cursor's access to SpaceX's computing infrastructure and SpaceX's acquisition of Cursor's AI technology and engineering talent. However, Susquehanna analyst Chris Murphy noted option trading data suggesting a 15% probability the stock could lose half its value within three months.
The volatility underscores broader concerns about SpaceX's valuation trajectory. Following its record-breaking IPO debut on Tuesday—during which investors poured $369.8 million into the stock, more than four times the volume of Nvidia purchases over the same period—some analysts have characterized SpaceX as emerging as a meme stock driven by speculative demand rather than fundamental value. The sharp gains and subsequent pullback have significantly impacted CEO Elon Musk's net worth, which declined by $67.8 billion to approximately $1.2 trillion, though Musk remains the world's richest person.
Why This Matters
This stock plunge demonstrates the volatility and speculative nature of high-growth tech IPOs, particularly those led by high-profile executives. For investors, it signals the risks of momentum-driven trading and the importance of evaluating large M&A deals critically—especially all-stock acquisitions that dilute existing shareholders. For SpaceX stakeholders, the market's sharp repricing of the company (from $2.99T to $2.37T) reflects investor skepticism about the Cursor acquisition's strategic value and raises questions about capital allocation efficiency in the aerospace and AI sectors.
Timeline & Sources
Jun 16, 2026
WireSpaceX completes IPO at $135 per share with record-setting demand
Jun 17, 2026
WireSpaceX shares reach peak above $225, up 50% from IPO price; company announces $60 billion all-stock acquisition of Cursor; option trading for SpaceX debuts
Jun 18, 2026
WireSpaceX shares decline nearly 5% on Wednesday
Jun 18, 2026
WireSpaceX shares fall over 6% on Thursday to just under $179; market value drops $620 billion from peak; SpaceX drops from 4th to 7th largest company by market cap; Morningstar lowers fair value estimate; Oppenheimer raises price target