SpaceX Stock Plunge Wipes Out $600B After Cursor Deal Spooks Investors

12 hours ago

SpaceX shares fell over 6% on Thursday, extending losses after hitting a high above $225 on Tuesday, resulting in a roughly $620 billion reduction in market value.
The company's $60 billion all-stock acquisition of AI coding startup Cursor has led to concerns about share dilution, with Morningstar analysts lowering their fair value estimate.
Option trading for SpaceX began on Tuesday, with some analysts predicting a chance of significant stock devaluation due to speculative trades.
Despite the selloff, some analysts, like Oppenheimer's Timothy Horan, praised the Cursor deal, projecting shares could rise to $250 by year-end.
CEO Elon Musk's net worth dropped by about $67.8 billion to $1.2 trillion due to the share decline, though he remains the world's richest person.
SpaceX's stock surged over 50% above its IPO price in a three-day streak, driven by high investor demand, but analysts have warned of overvaluation and volatility.

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