SpaceX stock drops. Here’s what to do next.

Some offers on this page are from advertisers who pay us, which may affect which products we write about, but not our recommendations. See our Advertiser Disclosure

SpaceX stock drops. Here’s what to do next

Hal Bundrick, CFP®· Senior Writer
Updated Mon, July 13, 2026 at 10:43 PM GMT+5:30
4 min read

For SpaceX IPO investors, the thrill ride has been IMAX-worthy. 

On IPO day, SpaceX stock (SPCX) opened at $150 and climbed past $160. Another near-20% gain the following Monday saw Elon Musk’s spaceflight, satellite communications, and AI company achieve a high orbit of $192.50. By its third trading day, SpaceX surpassed Amazon to become the fifth-largest publicly traded company by market value. 

To the moon, right?

Yet, as any savvy investor knows, things can get ugly fast: The stock quickly returned to Earth and has bounced below its market debut price more than once. SpaceX stock dropped another 4% on Monday, with a low under $140

This is what IPOs do

Wealth advisory Alliance Bernstein has tracked the performance of IPOs that raised $50 million or more over the past 10 years. Six months following the lockup, the median return was a 10% decline. 

“While most stocks began to recover, they typically failed to revisit their initial IPO heights,” the Bernstein analysis reported. While investors are often urged to remain calm and hang on, “in the six months following traditional lock-up expirations, one in 10 IPO stocks dropped by at least 62%.”

That’s where having a plan comes in

Plan for three possible stock scenarios

Whether SpaceX’s trajectory is high, low, or just bouncing on and off the atmosphere, investors will want a strategy in place. 

If SpaceX stock soars

Every investor’s dream: The stock soars while they’re along for the ride. Still, there are strategies to consider:

• Have a plan to take some profits along the way in a tax-efficient manner. 

• Ensure your SPCX doesn’t overwhelm your overall investment portfolio. Consider rebalancing holdings regularly to maintain a comfortable SpaceX exposure. 

If SpaceX stock stalls

If SpaceX stock hits a price ceiling and stays there, what should the reaction be? Ask investors who bought Tesla after its run-up to a trillion-dollar market valuation in 2021, following a massive order of Model 3 sedans from Hertz. The stock topped $407 a share. Now, four-and-a-half years later — after a lot of chart action along the way — it’s still there. 

If you believe in space as the “final frontier,” stick with it. 

If SpaceX stock crashes

This is the real test. If SPCX takes a dive, how does one prepare? The key is to avoid panic selling and have a strategy in place. The choices include:

• Use stop-loss or trailing stop orders to maintain a profit.Most investors can’t monitor the market constantly, so having a stop-loss or trailing stop order at a predetermined target price will help protect the profits of at least a portion of the SpaceX holdings

• Buy the dip. It takes some courage to buy more shares when a stock is in free fall, but it’s one choice to consider

• Make sure the rest of a portfolio is well-positionedso that a SpaceX setback won’t affect an overall wealth-building plan

• Consider selling a portion of SPCX holdings to offset taxable gains elsewhere in a portfolio

• Prepare for volatility: Using options can provide a profit cushion during SpaceX price swings. There are several option strategies to employ to provide some measure of downside protection, including an option collar, protective puts, and spreads. Learn more with this Yahoo Finance video on options trading

Other considerations about selling your SpaceX stock

Many insiders who hold pre-IPO SpaceX shares are subject to a lockup that prohibits them from selling their stock until after the company’s first quarterly earnings report. There are other tranches with different lockup expirations. As those deadlines roll off, the stock may see some volatility.  

The SpaceX S-1 amendment includes a notice that it “may issue additional shares for a variety of corporate purposes.” Some observers are taking that as a hint of a possible merger with Tesla and other opportunities that may dilute shares. That could cause the stock price to slump, at least temporarily. 

And there is one major factor to consider when thinking about selling: taxes. Will selling trigger a long- or short-term capital gain or loss? 

This is the most important thing to know 

Investing is difficult enough without considering the mental toll of sudden, frequent stock gyrations. Investors should know their investment risk tolerance to achieve their long-term financial goals — and perhaps reduce some of the stress

SpaceX IPO: Last-minute strategies on how you can invest

SpaceX is preparing for a historic stock market debut. Here’s what to know about buying IPO shares, brokerage qualifications, allocation rules, and other ways to benefit

OpenAI IPO: 6 things to know before you buy the stock

OpenAI’s IPO could be one of tech’s largest ever, but investors are facing questions about profit, spending, competition, and long-term growth. What to know about the IPO filing

How to protect your portfolio if you’re worried about an AI bubble

Some investors fear an AI bubble. These strategies can help safeguard your investments

Here’s what to do with your retirement savings in a market sell-off

Should you rebalance your portfolio in a volatile market? It can be tempting to make big moves when the markets are volatile, but experts advise caution

Create a stock investing strategy in 3 steps

An investing strategy aims to guide confident, effective trading decisions. You can develop a solid, personalized investing framework in three steps

Thinking of buying Nvidia stock? Consider also buying dozens just like it

A recent survey shows more people are investing in the market and, in some cases, favoring individual stocks over ETFs. Is it smart to bet on one stock?