SpaceX valuation drop wiped out around $600 billion in three days as investors questioned spending plans and future growth expectations.

NEW YORK: Less than two weeks after its historic stock market debut, SpaceX has suffered a sharp sell-off that erased roughly $600 billion in market value in just three trading sessions.

The dramatic SpaceX valuation drop came after investors initially pushed the company close to a $3 trillion valuation, fuelled by excitement around Elon Musk’s ambitions in artificial intelligence, space exploration and advanced computing.

For many investors, buying SpaceX was not just about rockets or satellites. It was a bet on Musk’s ability to shape the future of technology. That optimism helped drive one of the biggest post-IPO rallies seen in recent years.

However, the mood shifted when investors began taking a closer look at the company’s finances. One key trigger was SpaceX’s decision to launch an investment-grade bond offering despite reportedly holding more than $100 billion in cash and cash equivalents.

The move left investors asking a simple question: if the company already has that much cash, why raise more money? While SpaceX said the funds would support corporate operations and refinance existing debt, some investors interpreted the decision as a sign of how costly its long-term plans may become.

The SpaceX valuation drop also comes as markets become more selective about artificial intelligence investments. Over the past year, companies linked to AI have enjoyed soaring valuations, but investors are increasingly looking for clear paths to profitability rather than distant promises.

Although SpaceX has reported strong revenue growth, the company continues to spend heavily on AI infrastructure, data centres and ambitious space projects. Those investments have contributed to significant losses, raising concerns that its market value may have moved ahead of current business fundamentals.

Even after the recent decline, SpaceX remains one of the world’s most valuable companies. Still, the SpaceX valuation drop highlights a changing market where investors are demanding more than vision alone. They now want proof that ambitious plans can eventually deliver financial returns.

-Agencies