SpaceX shares sank 4.95% on Wednesday, putting a damper on momentum after a red-hot first few days of trading.
The Elon Musk-led company has seen its stock surge around 42% since its blockbuster IPO on Friday, which offered shares at a set price of $135.
The first few days of gains for SpaceX pushed its market cap above Amazon on Tuesday, and it briefly surpassed Microsoft to become the fourth-largest company by valuation in the U.S.
SpaceX had a market cap of $2.66 trillion at close on Tuesday.
Investors are betting big on the promise of Musk’s ability to drive long-term returns.
Musk posted on X on Sunday that the company “might be able to reach approximately” $1 trillion revenue in 2030.
SpaceX posted a $4.9 billion net loss in 2025, and it lost $4.28 billion in the first quarter of this year.
SpaceX shares over the past day.
The lofty valuation for the company that has become dominant in satellites through its Starlink service and reusable rockets has raised questions about its ambitious growth plans.
Investors are “trading the story, they’re trading the action, they’re trading the excitement, they’re trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement,” Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC’s “Squawk Box Asia.”
“If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation,” he added. “I think that that’s going to take at least a couple of years.”