AI Winds Reverse for SpaceX: Giant Company Plummets 45% in 6 Days
SpaceX shares have extended their losing streak to a sixth day, losing 45% of their value from their peak as AI-focused valuation expectations weaken.
Elon Musk’s space transportation company, SpaceX, is navigating a particularly challenging period in the financial markets. As the company’s shares lost value for the sixth consecutive trading day, debates over the “AI premium” among investors have reignited. Julie Biel, Chief Market Strategist at Kayne Anderson Rudnick, analyzed the primary reasons behind this sharp decline in market value during an appearance on CNBC’s Fast Money program.
According to Biel, SpaceX’s previous high valuation logic did not stem solely from rocket technology or projects like Starlink. The analyst argues that the primary driver was the strategic link established with xAI, Musk’s artificial intelligence venture. It is estimated that the combined valuation of these two massive entities approached the $900 billion level prior to their potential alignment. However, the fading of this AI-driven optimism is now exerting significant pressure on the shares.
AI Impact Fading for SpaceX Shares
Although the 45% drop from peak levels creates a perception of “cheapness” in the market, Biel emphasizes the need for caution. Even if the shares approach a price of approximately $135, they might still be considered expensive under current conditions. This situation suggests that investors are no longer focusing solely on physical milestones but rather on the sustainability of technological integration and AI-related expectations.
As clearly demonstrated by the data, the six-day continuous decline chart reveals the depth of the selling pressure in the market. Rather than SpaceX’s operational achievements, the severance of the valuation link with xAI is redefining the company’s market value. Experts state that this decline in Musk’s technology empire is directly related to the normalization of AI expectations across the broader tech market.