SpaceX stock continues to dip ahead of Russell 1000 inclusion

SpaceX SPCX shares fell more than 1% in trading on Thursday, extending a recent pullback after closing at $154.54 in the previous session, their lowest close since the company’s mid-month IPO.

The stock briefly dipped below its $150 IPO price earlier this week but remains slightly above its initial trading level of June 12.

After debuting at $135 and surging above $225 in early sessions, the stock has since retreated, reflecting increased volatility in the days following listing.

Retail demand remains strong despite price pullback

Market attention has shifted to retail investor behavior following the IPO, with data suggesting continued buying interest even as the stock has cooled.

Vanda Research noted in a Wednesday report that retail investors have consistently added to positions since listing.

"Unlike many thematic launches that quickly lose momentum, retail investors have been net buyers every day since the stock listed, reinforcing its status as a retail favourite," Vanda wrote.

The firm also highlighted uncertainty around future flows.

"The next question is whether fresh inflows reaccelerate or whether investors begin rotating back into individual AI names following the recent pullback."

Meanwhile, early Wall Street coverage has taken a cautious stance.

KeyBank initiated coverage without a price target, stating the company “possesses significant disruptive growth avenues, though we believe this is reflective in [the] current valuation and risk/reward appears balanced, in our view,” they wrote.

Susquehanna also initiated coverage with a Neutral rating and a $170 price target.

Index inclusion, debt activity, and earnings outlook

SpaceX is set to be included in the Russell 1000 index on Friday, a move expected to increase exposure within growth-oriented funds.

The stock will be classified as approximately 90.4% growth and 9.6% value within the index framework.

The IPO comes amid additional corporate financing activity.

The company recently tapped debt markets following its listing, with an offering that drew reported demand of nearly $89 billion and carried coupons ranging from 5.35% to 6.65% with maturities between 2031 and 2056.

The proceeds are expected to be used to repay a bridge loan, cover fees, and support general corporate purposes.

The refinancing replaces a $20 billion bridge loan related to debt from xAI, which SpaceX acquired in February.

The company is also preparing for its first earnings report as a public entity, expected in late July or early August.

Investors are expected to focus on Starlink subscriber growth and Starship R&D spending.

“Starlink is the biggest revenue and profit driver for the company right now,” Morningstar said in a note earlier this month.

Musk’s wealth declines after IPO-driven surge

The recent pullback in SpaceX shares has also impacted Elon Musk’s net worth, which fell to $946 billion from about $1.11 trillion earlier this month, according to the Bloomberg Billionaires Index.

Musk had briefly crossed the trillion-dollar threshold following SpaceX’s June 12 IPO, when shares surged to $225.64 and lifted his paper wealth to a peak of around $1.32 trillion.

However, the subsequent decline in both SpaceX and Tesla shares has reduced his fortune significantly, though he remains the world’s richest individual by a wide margin.

The IPO rally has cooled as investors reassess valuations, capital intensity, and future growth expectations tied to SpaceX’s expanding AI and satellite ambitions.