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SpaceX shares have faced a sharp decline in value over the past month, with the company losing nearly a trillion dollars in market value since its initial public offering in June 2026.

Elon Musk officially attained the title of 'trillionaire' after SpaceX's initial public offering on June 12, and his fortune, according to Forbes data as of Friday afternoon, stood at just $797 billion, down from $1.4 trillion on June 16.

SpaceX's stock price has fallen from its intraday high of $225.64 to $124 currently, below the IPO price of $135, causing the company to lose about 40% of its market value in one month.

This decline has unsettled retail investors who rushed in amidst the great enthusiasm following the offering.

The failure of the latest Starship V3 launch, which was anticipated as the first launch after the public offering, contributed to increased pressure on the stock.

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This may not be the last decline, as the supply of tradable shares is expected to increase after the 'lock-up period' ends for early investors and employees following the announcement of second-quarter results on August 6.

Estimates suggest that about 1.37 billion shares could enter the market next month, nearly doubling the current supply of shares.

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Despite everything, Musk remains active on platform X, tweeting about SpaceX and Grok and sometimes stirring controversy with posts on politics and culture, including his attack on the new film 'The Odyssey' and what has been described as racist and promotional AI-generated clips.

Musk recently avoided an interview with CNBC, raising further questions about his willingness to face tough market questions, especially amid ongoing questions about SpaceX's profitability outside the Starlink sector.

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On the other hand, platform X, which Musk acquired in 2022, continues to lose its regular users and has transformed, in the eyes of many, into a platform dominated by insular and extremist discourse, amid increasing accusations that Musk is losing touch with reality outside his digital 'bubble.'

Summary:

The collapse of SpaceX's value so quickly is not just a stock price fluctuation but reflects deeper concerns about the company's ability to generate sustainable profits, especially with the approaching end of the lock-up period and the opening of the door to massive sell-offs in the market soon.