A Record IPO Followed by a Stumble

The SpaceX stock price has been on a turbulent ride following the company’s history-making IPO — and a major acquisition appears to have spooked investors. After debuting on June 12 in the biggest IPO ever, a deal that made Elon Musk a trillionaire, the stock dipped just days later when SpaceX announced its purchase of the AI coding agent Cursor.

The pullback has raised a pressing question for investors: just how low could the stock go from here?

A Rapid Rise and Fall

SpaceX’s stock initially launched at $135 and surged past $170 on the same day, according to Mashable. The momentum continued, with the stock reaching a high above $225 by Tuesday, June 16, per Forbes. However, some of those gains began slipping away by Wednesday.

The turning point appears tied to a massive acquisition. The $60 billion deal between SpaceX and Anysphere — the startup behind Cursor — was announced on Tuesday. The market reaction was swift:

• The day after the announcement, the price fell five percent, according to CNBC
• It dropped another 3.75 percent on Thursday

With markets closed on June 19, SpaceX’s share price stood at $185 at the time of writing. While it has slipped slightly, the stock remains well above its original IPO price.

Is SpaceX Overvalued?

The big debate now centers on the company’s true worth, and analysts are sharply divided.

Investment research firm Morningstar took a notably bearish stance, reporting that SpaceX is “wildly overvalued.” The firm pegged its fair value estimate at just $62 a share, with even a best-case scenario pricing shares at $169. That figure would fall below the current price, though it would still sit above the IPO level.

A More Bullish View

Not everyone shares Morningstar’s skepticism. Investment bank Oppenheimer and Co. actually raised its projection for SpaceX stock from $190 to $250 following the acquisition disclosure.

Analyst Timothy Horan offered an optimistic take, arguing that SpaceX “owns every layer of the AI stack, giving it cost and quality advantages.” He pointed to Cursor as a major component of that strategic strength — suggesting the acquisition could be a long-term win rather than a misstep.

What It Means for Musk’s Fortune

There’s also a personal stake in the stock’s trajectory for Elon Musk. As long as the stock holds its ground, his trillionaire status remains intact.

The key threshold to watch is $138 — unless the stock dips below that mark, Musk retains his trillionaire title. For now, with shares at $185, that buffer remains comfortably in place.

An Uncertain Road Ahead

So where does SpaceX go from here? The answer remains genuinely uncertain. With one major firm calling the stock dramatically overvalued and another raising its target significantly, investors are left to weigh competing visions of the company’s future.

What’s clear is that the Cursor acquisition has injected fresh volatility into a stock that only recently made history. Whether the dip deepens or the bulls prove right, SpaceX’s stock price will likely remain a closely watched story in the weeks ahead.

A quick note: this article covers market movements and analyst opinions for informational purposes and shouldn’t be taken as financial advice. Anyone considering a trade may want to consult a licensed financial professional and do their own research before making decisions.