SpaceX Stock Falls to $185 After Cursor Deal, June 19

SpaceX stock fell to $185 on June 19 after climbing to a peak of $212 earlier in the week. The decline followed the company’s announcement of a $60 billion acquisition of AI coding platform Cursor and broader profit-taking. The stock remains 37% above its $135 IPO price from June 12, which valued the company at $1.77 trillion and made Elon Musk the world’s first trillionaire.

Stock Volatility After Record IPO

SpaceX shares opened at $150 on June 12 and surged 19% on the first day of trading. By Tuesday, June 16, the stock hit $212, up 57% from the IPO price. The rally reflected strong retail investor demand. Vanda Research reported that retail investors bought roughly the same amount of SPCX over three sessions as they bought NVDA, GOOGL, AMZN, MSFT, META, QQQ and SPY combined. However, the stock fell 3.6% on Thursday and another 3.75% on Wednesday after the Cursor acquisition news.

Cursor Deal Raises Questions on Valuation

SpaceX announced plans to acquire Anysphere, the company behind AI coding assistant Cursor, for $60 billion using new equity issuance. The deal signals SpaceX’s shift toward AI as a core business alongside Starlink satellite internet and rocket launches. Morningstar analysts estimate SpaceX’s fair value at $62 per share, with a best-case scenario at $169, suggesting the stock is overvalued at current levels. Oppenheimer raised its price target to $250, citing SpaceX’s control of multiple AI layers.

Retirement Savings Exposure Sparks Concern

Millions of Americans hold SpaceX shares indirectly through 401(k) retirement plans and index funds. Americans express unease over SpaceX’s influence on pension funds, citing fears of market instability and inequality. SpaceX will enter major indices including MSCI, FTSE Russell, and Nasdaq next week, adding structural demand from passive funds. State Street estimates SpaceX will represent 0.12% of the MSCI All-Country World Index.

Bond Offering and Refinancing Plans

SpaceX plans to raise at least $20 billion through an investment-grade bond offering, according to Bloomberg. Investment bankers prepare investor calls for next week. The proceeds will refinance a bridge loan maturing in 2027, likely related to the xAI integration. The offering signals SpaceX’s intent to invest billions in data centers, semiconductors, and energy infrastructure alongside its core space and satellite businesses.

Final Thoughts

SpaceX stock fell to $185 after profit-taking and the Cursor acquisition announcement, though it remains 37% above the IPO price. With Morningstar rating fair value at $62 and Oppenheimer targeting $250, the wide analyst range reflects deep uncertainty about the company’s AI strategy and valuation.

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