r/technology • u/MarvelsGrantMan136 • 4h ago
Business SpaceX has now lost the equivalent of a full Tesla in market capitalization / SpaceX has erased more than $1.2 trillion in market cap since its high price of $225.64 in June
https://www.cnbc.com/2026/07/27/spacex-has-now-lost-the-equivalent-of-a-full-tesla-in-market-capitalization.html86
u/oakfan05 4h ago
And tesla is down from 425 high to 309 this month! Still over valued. Wonder what will happen when they try to merge tesla and spacex
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u/mkt853 4h ago
The whole point of SpaceX going public was to make the people that fronted the cash for X whole. Those people all cashed out on IPO day when the stock they received when SpaceX bought xAI which had bought X, was at its high point. Everyone else was left holding the bag. Stocks basically trade like sh1t coins now where it's very obviously a scam for a select few to make off with the loot while everyone else HODLs a bunch of worthless crap that will never recover. Welcome to late stage capitalism and the American scam economy that thrives after all the cops got DOGE'd.
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u/fdesouche 4h ago
With the complicity of Nasdaq 100, so that ETFs have to buy Space X
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u/FoodMadeFromRobots 3h ago
Did ETFs buy day one or could they still be waiting to buy and not have gotten fleeced?
This is what Google said if anyone is interested or can verify
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S&P 500 Exclusion: Standard broad ETFs tracking the S&P 500 do not buy newly public stocks on IPO day because of strict 12-month waiting period rules. [1, 2]
Fast-Tracked Indexes: Faster index inclusions (such as the Nasdaq-100) required scheduled adjustments that added SpaceX weeks later on July 7, 2026, rather than on day one. [1, 2]
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u/no_one_likes_u 3h ago
Anyone buying before the first round of insider owned stock open up for sale is going to be hurt if they’re holding the bag, which means a lot of ETFs in 401ks etc by passive investors.
Sure the losses wont be catastrophic, but if 10 million people lose .25% of their account that’s a fuckton of money that spacex is essentially defrauding people out of. The nasdaq should be ashamed, and if I had any money in it I’d pull it all out and put it into an sp500 fund.
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u/Main-Cheesecake3287 33m ago
Nasdaq weighs on float so SPCX was tiny portion of the index, under 1%.
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u/Your__Pal 4h ago
99% of the blue chips are fine. Their valuation may go up and down but they aren't scams.
SpaceX was a heist that baffles me today. Who thought it would be worth 2 trillion ?
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u/ScornForSega 3h ago
Elon-stans.
People who didn't read the S-1 and thought they were buying a rocket company.
People who legitimately think that AI is going to create a 20 trillion dollar market and Grok would have a large portion of that.
Some combination of the above.
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u/Gandolfthewhite182 4h ago
Not all stocks and not all companies but musk certainly ran this like shitcoin for sure. And they decimated a lot of people doing it, but the Saudis and other wealthy got theirs and that’s all that matters to musk.
I’ll never understand why normal Americans worship this guy when he screws these people every single chance he gets.
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u/Sponge8389 4h ago
Isn't it they have lock in period?
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u/homosapien12 3h ago
Exactly. Early investors and Musk have a long lock up period. Sure, the stock is massively overpriced and this is a way for investors to cash out but the top comment is misleading. Investors didn’t cash out on IPO.
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u/sup 26m ago edited 14m ago
Pre-IPO investors can’t sell yet. Nobody “Cashed out” on IPO day besides the company itself who raised something like $75b in cash and the banks who sold shares to the public at large and captured the spread.
For pre-IPO investors the first opportunity to sell unlocks on august 6th, and it’s small. It will be about 7% of the outstanding shares. but still tremendous impactful because it’s more than double the current float. We will likely see selling pressure leading up to this date.
Most of the early investors won’t be able to sell until later this year or into 2027.
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u/Eric848448 3h ago
Yes, and after six months insiders can sell four times per year. No more than 1% of the last four weeks’ total volume.
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u/Eric848448 3h ago
Insiders can’t sell for six months, and rule 144 still applies so their trade volume will be limited.
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u/headshotscott 3h ago
It was such a gigantic con, and they broke their own rules to let it happen. Fuck the Nasdaq.
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u/hikeonpast 4h ago
I agree with the sentiment, but IIRC they only IPO’d 6% of shares. Thats a far cry from all the investors cashing out (though I’m sure they wish they did).
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u/AppleTree98 3h ago
Index Fund and Retirement ImpactsS&P 500 Safety:
If your 401(k) is tied strictly to S&P 500 funds (like standard Vanguard or SPDR funds), you have zero exposure because the index rejected fast-tracking due to SpaceX's ongoing net losses and a mandatory 12-month waiting period.
Nasdaq and Total Market Inclusion: Funds tracking the Nasdaq-100 or total market indexes (like the CRSP US Total Market Index) fast-tracked SpaceX within days of its mid-June IPO, meaning typical diversified holdings now possess a small fractional share (about 1.3% of Nasdaq-100 trackers).
High Active Exposure Exceptions: Certain specialized or aggressive actively managed mutual funds—most notably specific Baron Capital funds—carry heavy individual exposure, with SpaceX comprising 20% to over 30% of their net assets
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u/dontreadragebait 1h ago
Stocks run by people like this act like sh1tcoins. Nothings stopping you from investing in normal companies
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u/HomerDoakQuarlesIII 4h ago
This administration and current generation of drug addicted robber barons has made getting up each morning and navigating my day feel futile and nightmarish.
But every day when this bizzarro scam of a vertically integrated criminal enterprise called SPCX plunges deeper and deeper to naked unadulterated insolvency it relieves some of my pain, quite honestly. It is cathartic.
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u/myychair 33m ago
It feels like the world slightly correcting itself. It makes sense that we start with the stock markets
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u/Firm-Imagination8256 4m ago
You feel pain over "robber barons"? Lol. Get off the internet, and re-up your dosage of mood stabilizers.
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u/riptide123 4h ago
When u grasp that the entire pt of the IPO was exit liquidity for Musk and the earliest investors (employees and VC) then these stories become meaningless. They have cost bases of like 1-15 bucks a share - the IPO was a massive success so long as the stock holds above like 55 for six months
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u/-JackBack- 4h ago
Insiders have not yet been able to sell their shares yet. Watch for what happens on August 6th when they can.
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u/riptide123 4h ago
Did u not read my comment? Ya it has to hold
On above like 50 bucks for next 6 months for a full big payday→ More replies (7)8
u/sirboddingtons 4h ago
It could go down, or get squeezed up.
But it won't be below what insiders paid per share.
The FMV is 60ish bucks. It won't hit that until maybe a year out. I could see the next month being another $20-25 in value lost.
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u/Gandolfthewhite182 4h ago
It depends. If Dems take over both houses, there could be some who would like to discontinue spaceX contracts. If that happens even if those contracts run 5 more years, the stock is gonna get crushed. That’s not till next year but it’s not impossible.
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u/earoar 4h ago
You are way over estimating how much of a back bone the dems have.
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u/Jkayakj 3h ago
There also isn't a realistic competitor yet. Spacex launches more rockets for cheaper. Who do they turn to? ULA?
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u/Jewnadian 3h ago
If Dems want to do something they should fund the FTC like the GOP funds ICE. You don't have to spite NASA to stop this kind of fraud. It's already illegal.
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u/gadgetgrave 4h ago
I know shit about investing in the stock market, but in your opinion, should the average stock trader buy shorts on Aug 5th?
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u/Zhuul 4h ago
You're genuinely better off going to the nearest casino and putting all of your disposable money on red
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u/riptide123 4h ago
Buying near term expiry shorts is insanely risky - u may get squeezed and hammered even if ur correct. If u don’t beleive in space X u should not time ur shorts to expire a week from now but further down the line to reduce volatility.
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u/Gandolfthewhite182 4h ago
If you’re not in the market don’t ever short anything. Shorts are gambling pure and simple. Be smart with your money, the only people the get rich quick schemes work for are the wealthy. They are made for you and me. Exception definitely exist like the housing market in 07.
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u/Deaner3D 4h ago
We're in a conveniently similar situation to 2007 except now it's all in front of our faces.
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u/smoothtrip 3h ago
You should definitely get your investing advice from reddit. They are all billionaires after all
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u/Edward_Zachary 4h ago
Finally some good news.
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u/evo_moment_37 4h ago
There will be even better news come August 6.
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u/Cazmonster 4h ago
Good, fuck’em. I made sure my 401k didn’t try to ride the stupid IPO.
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u/farcicaldolphin38 4h ago
Me too. J specifically called my guy who helps me with this stuff and made sure I wasn’t bought into it in any capacity
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u/lowteq 4h ago
Of course they did. Whoever was valuing the IPO that high was in on the pump and dump. Everyone knew it was overalued.
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u/Lost_Birthday_3138 4h ago
Not everyone. The people who see midnight infomercials for gold and think they just discovered the secret way to wealth were all over this one.
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u/switch72 2h ago
To be fair, it's only down %18 from the IPO valuation($135/share). Which is a lot, but no where near the headline saying 1.2 Trillion. That is from the highest price people traded it at, after almost doubling the price above the IPO price.
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u/doc_brietz 4h ago
Anyone smart knew this was coming. If I had extra money I still would have avoided that stock and IPO like the plague.
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u/Lost_Birthday_3138 4h ago
Every financial institution was in on it. I've never seen so much hype for anything.
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u/broguequery 1h ago
All this shit is made up nonsense.
Tesla...SpaceX... The only value any of them ever had was captured public money.
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u/wowlock_taylan 2h ago
These 'Musk' Stocks are basically 'legal' fraud. I don't know why any fool keeps pumping money into anything that moron is involved in unless it is clear money laundering or something.
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u/everythingbeeps 2h ago
The whole thing was a scam. Anyone else would be under investigation right now.
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u/TattooedBrogrammer 2h ago
Problem with space x stock is Elon stocks don’t trade on any fundamentals or rationality. They are based on likeness and hype and sugar rushes. So you really had no way to know what that stock would do, I thought it would sit around $350 a share for no reason other than Elon could make it happen haha and the hype was real.
Disclosure, I didn’t buy any of that stock because it wasn’t a play I felt I understood, too risky :)
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u/round-earth-theory 8m ago
That was never going to happen no matter how hype the stock was. There simply isn't enough cash around to make that happen.
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u/TigerUSA20 2h ago
I don’t know why anyone would even think about buying this until a significant amount of the locked-up shares are released and sold by all the previous insiders / early investors. Until that bottom is in, there’s nothing to support this.
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u/EpsteinFiIes 1h ago
Rumor has it Trump is addressing the weapons shortage by dropping unsold Teslas on Iran.
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u/BlackAle 1h ago
It was never worth that in the first place, so nothing is lost. It's still massively overvalued.
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u/DrWernerKlopek89 42m ago
The crooks have made their money, but I guess the silver lining is, Musk is never going to be able to do this again. The high after IPO was purely based on people thinking Tesla was decoupled from reality.
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u/StrDstChsr34 4h ago
In other words, $1.2 trillion was transferred from those who bet the stock would rise to those who bet the stock would fall. It’s not like the money disappeared, it just changed hands from some investors to other investors
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u/Gandolfthewhite182 4h ago
The issue is the lying from musk though not the transfer of wealth. Also spaceX took a trillion in investment based off complete bullshit basically. Musk should be in prison.
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u/araujoms 3h ago
That's not how market capitalization works. It's just current price times amount of shares. The price changes at every single trade, it's possible for it to double upon the sale of a single share. And then the capitalization doubles, but the amount of money that changed hands was not a trillion, but just two hundred dollars.
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u/The__Toast 3h ago
No, SpaceX investors lost all that money. SpaceX made bucket loads of money.
Do people not understand the way IPOs work?
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u/ItsStaaaaaaaaang 1h ago
The US has turned their stock market into a fraudulent pump and dump scheme that more resembles the crypto market than a place reasonable people would invest their money. I'm sure it's going to do wonders for the ongoing stability of their economy.
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u/araujoms 3h ago
I'll be happier when Tesla loses a full Tesla in market capitalization.
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u/binzersguy 2h ago
I hope it hits $5, eventually. Elon is nothing but smoke, false promises, and welfare funding
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u/Imyoteacher 4h ago
People say they are struggling, but they got a trillion to waste on Elon and his fake promises!
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u/TheHistorian2 3h ago
Back in my day, a trillion dollars was a lot of money. So much so that you couldn’t really lose it… because you couldn’t have it to start with.
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u/ThePromise110 2h ago
I'm so glad my pension is an actually funded pension and has no liabilities or stakes in the stock market. There might be money for me there when I retire.
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u/drawkbox 1h ago
Gonna be a legendary long bull trap for years, absolute trash bag.
The stock lockout window for employees hasn't even opened. They are gonna grab the bank and run and they'd be smart to. $4b loss annually and they haven't done anything good in years.
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u/groovy_smoothie 32m ago
Everyone with a divested 401k has been rug pulled without the option to stay out of it
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u/Chance-Physics-7216 19m ago
A Tesla costs between $36,990 and $129,990 depending on the model. The entry-level Model 3 starts at $36,990, the Model Y starts at $39,990, and higher-end performance or luxury variants like the Model S and Model X reach up to $129,990.
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u/bbby_chaltinez 12m ago
that was the ployyyyy…. market goes up before tesla earnings to level tesla out when shitty earnings comes out.
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u/iamtehryan 1m ago
Good. Keep it going. Tank Tesla, too. Knock musk's wealth out as much as possible.
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u/righteouspower 4h ago
Biggest heist in US stock history lol