Shares of SpaceX shed 10% on Monday, marking the third straight session of declines since an opening burst of enthusiasm greeted the company's Nasdaq $NDAQ debut.
The decline extended a slide that began last week. In the immediate aftermath of its debut, the stock climbed sharply over the first two trading sessions, at one point vaulting SpaceX's market capitalization above both Amazon $AMZN and Microsoft $MSFT before giving back those gains after pricing its IPO at $135 per share. The selling began midweek, with the stock retreating 5% on Wednesday and another 3.6% on Thursday before markets closed for the Juneteenth holiday. Measured against the $135 IPO price, the stock was still sitting on a 37% gain as of Thursday's close, even after absorbing the recent pullback, according to CNBC.
Part of last week's decline was tied to MSCI assigning SpaceX its lowest possible ESG rating. The firm gave SpaceX a CCC — the bottom of its environmental, social, and governance scale — on June 11, citing exposure to ESG risks and insufficient management of those issues. SpaceX received a controversies score of 1 out of 10 and a governance score of 3.2 out of 10 in the same assessment. CEO Elon Musk responded on X $TWTR with a one-line rebuttal: "Unfortunately, electric rockets are impossible."
Also on Monday, SpaceX announced the commencement of a senior unsecured notes offering to qualified institutional buyers under Rule 144A and to non-U.S. persons under Regulation S, the company said. SpaceX said it intends to use the proceeds to repay outstanding borrowings under its bridge loan facility in full, cover related fees and expenses, and apply any remainder to general corporate purposes. The company also disclosed that it held approximately $100.8 billion in cash and cash equivalents as of June 19, 2026.
SpaceX posted a $4.9 billion net loss in 2025 and lost an additional $4.28 billion in the first quarter of 2026. Those who remain optimistic about the stock are wagering that Musk will deliver outsize returns over time. With more than 82% of voting power concentrated in his hands, Musk serves as chairman, CEO, and technology chief, leaving shareholders with limited ability to influence the company's direction.
The IPO, which raised nearly $86 billion after underwriters exercised the greenshoe allotment, surpassed Saudi Aramco's 2019 offering to set a record. For investors who purchased shares on the open market following the listing rather than at the IPO price, the recent slide had wiped out nearly all of their paper profits by Friday's close.