What drove the SpaceX stock pullback
Investor sentiment has shifted as the market weighs the cost of SpaceX’s AI expansion against its current valuation.
The company reported a net loss of US$4.28 billion in the first quarter of 2026. Full-year 2025 losses totalled US$4.94 billion, according to Reuters. Revenue rose 33 per cent to US$18.67 billion in 2025.
On June 16, 2026, SpaceX confirmed it would acquire Anysphere – the startup behind AI coding agent Cursor – for US$60 billion in an all-stock deal. Earlier in 2026, it had already absorbed Musk’s AI startup xAI.
At its IPO valuation, analysts noted SpaceX would trade at roughly 67 times sales – about three times Nvidia’s revenue multiple, according to Dan Coatsworth of AJ Bell. Since then, the stock has risen further, putting additional pressure on that multiple.
In a pre-IPO analysis, Morningstar analysts Nicholas Owens and Suryansh Sharma said SpaceX was “significantly overvalued,” placing fair value at US$780 billion. That’s less than half of its listing valuation.
