June 19, 2026 SpaceX shares fell more than 6 per cent Thursday, extending a sharp selloff that began after the company announced plans to acquire AI coding startup Cursor in a stock-based deal valued at $60 billion. The decline has erased about $620 billion in market value since SpaceX reached a record high above $225 per share on Tuesday.
By Thursday afternoon, SpaceX shares were trading just under $179, following a nearly 5 per cent decline on Wednesday. The company’s market value dropped to approximately $2.37 trillion from about $2.99 trillion at its peak earlier in the week.
The selloff followed SpaceX’s disclosure that it would acquire Cursor through a stock transaction representing roughly 3.4 per cent dilution based on the company’s $1.77 trillion initial public offering valuation. Dilution reduces existing investors’ ownership stakes as new shares are issued.
Following the announcement, Morningstar lowered its fair value estimate for SpaceX shares to $62 from $63, citing what it described as a sizable dilution of shareholder value. The research firm said a best-case scenario could value the shares at $169 if the company’s AI-related revenue improves.
The decline comes after a strong start to public trading. According to Vanda Research, investors purchased $369.8 million worth of SpaceX shares during the company’s first three trading sessions, more than four times the amount invested in shares of Nvidia over the same period. Additional pressure may have come from the launch of options trading for SpaceX on Tuesday. Susquehanna analyst Chris Murphy wrote that there was a 15 per cent chance the stock could lose half its value over the next three months because of options-related trading activity.
Not all analysts view the acquisition negatively. Oppenheimer analyst Timothy Horan said the deal could help boost SpaceX shares to $250 by the end of the year, raising his previous target of $190. According to Horan, Cursor would gain access to SpaceX’s computing resources, while SpaceX would benefit from Cursor’s AI technology, engineering talent, training data and user base.
The stock decline has also affected CEO Elon Musk’s wealth. According to Forbes estimates, Musk’s net worth fell by $67.8 billion to about $1.2 trillion. His fortune had previously climbed above $1.4 trillion during SpaceX’s three-day rally.
SpaceX shares had surged roughly 50 per cent above their IPO price of $135 before the recent pullback. Some analysts have previously warned that the stock’s valuation is heavily tied to emerging technologies that remain unproven, while others have compared its trading behaviour to highly volatile meme stocks.
