Elon Musk's SpaceX deflates on the stock market, erasing almost all the euphoria of its historic debut

The stock market debut of SpaceX is rapidly losing its luster. Ultra-Elon Musk's space company falls another 10% on Wall Street and has now strung together three consecutive days of declines, with a correction that brings it back close to its first day of trading levels. After a euphoric IPO, the stock has gone from hitting highs above $200 to trading near $160-170, erasing much of the initial rally.

The turnaround comes after several analysts warned of a valuation difficult to justify with the company's current financials. SpaceX even surpassed giants like Amazon in capitalization despite operating on a very different scale of revenue and profit. Musk's company billed around 17 billion euros last year and reported net losses exceeding 4 billion, while the market was paying multiples typical of a company that still needs to convert promises into cash.

The reputational blow also weighs heavily. MSCI has given SpaceX the lowest possible rating, a triple C, due to risks linked to its power structure. The agency points to the concentration of control in Musk's hands, the curtailed voting rights of a large portion of the shares, the lack of independence of the board, and potential conflicts of interest with the magnate's other companies, such as Tesla or xAI. For a market that was already buying into expectations of artificial intelligence, satellites, and space ambitions, the rating has served as an uncomfortable reminder.

SpaceX still maintains one of the largest valuations in the world and continues to close enormous deals, from contracts linked to AI computing capacity to a possible multi-billion dollar bond issuance. But the first major test on Wall Street has already sent a clear signal: Musk's name can ignite a historic IPO, though it is not enough on its own to sustain a trillion-dollar capitalization if the market starts to look at the financials with more scrutiny.