When Elon Musk’s Space Exploration Technologies (SPCX -2.85%) — commonly known as SpaceX — priced its IPO at $135 per share, many said it was too expensive. And when it climbed to more than $200/share within a week, they said it was way too expensive.

But now SpaceX’s stock has fallen more than 40% from its high and is trading at about $116 per share as I write this, 13.2% below its IPO price. Is this a sign of more losses to come or a buying opportunity? Here’s what investors need to know.

Image source: Getty Images.

What goes up…

SpaceX’s business is built on getting things into space. In 2025, the world sent 3,194 metric tons of stuff into orbit, and SpaceX’s flagship rocket launch business carried more than 80% of…