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SpaceX Valuation Drops $400 Billion in a Day, the Second-Largest Decline in History

SpaceX reportedly saw its valuation fall by $400 billion in just one day of trading, making it one of the largest corporate value declines ever recorded in global market history.
According to a Financial Times report, the aerospace company owned by Elon Musk tumbled in value following a combination of negative sentiment driven by MSCI’s downgrade of ESG ratings, growing investor concerns about the valuation of the technology and AI sector, and pressure on the stocks of high-growth companies.
The $400 billion decline is described as the second-largest daily market value loss ever suffered by a company. The figure even surpasses the total market capitalization of many major public companies worldwide.
Despite the sharp correction, SpaceX still retains its status as one of the most valuable private companies in the world. The company’s business spans rocket launch services, space exploration, defense contracts, and the ever-expanding Starlink satellite internet network.
This major correction comes amid rising investor caution toward the technology sector after a long rally driven by the AI boom. Several analysts believe the valuations of some technology companies have reached very high levels, making them vulnerable to profit-taking as well as shifts in market sentiment.
In addition to valuation factors, investor attention is also focused on the various challenges facing SpaceX, including the need for large-scale funding for space exploration programs, the development of Starship, and increasing competition in the satellite and rocket launch industry.
Even so, many investors still view SpaceX’s long-term prospects as strong, given the company’s dominance in the commercial space sector and Starlink’s position as one of the largest satellite internet networks in the world.