SpaceX briefly overtook Amazon to become the world’s fifth-highest-valued company and nearly overtook Microsoft, but the company’s stock reversed those gains before the market closed on Tuesday.
The newly listed company’s stock price had already risen 20% in its first full day of trading on Monday. Tuesday’s news that SpaceX would acquire AI coding company Cursor and the start of options trading on SpaceX stock sent the stock higher, pushing its valuation to $2.9 trillion, but it eventually subsided.
This is all despite the fact that SpaceX posted a loss of $4.9 billion on sales of $18.7 billion last year, compared to Amazon, which made a profit of $78 billion in 2025 on sales of $717 billion in 2025. However, SpaceX has recently added a new revenue stream in the form of computing lease deals with Anthropic and Google, which will absorb revenue from Cursor when the deal closes in the third quarter.
Anthropic and Google’s agreement isn’t binding, but investors don’t seem to care in either case. Elon Musk’s space and AI company has increased in valuation by about $1 trillion since going public on Friday.
The deal gave SpaceX nearly $86 billion in new capital, largely based on the promise of creating an AI business worth trillions of dollars. That’s a wild claim for a company that recently completely dismantled its AI division.
SpaceX first announced its partnership with Cursor in April, when Musk said his AI company xAI (now part of SpaceX) was “not built right from the beginning” and was rebuilding it “from the ground up.” SpaceX is making acquisitions with $60 billion worth of its own stock.
SpaceX’s historic IPO debuted at a valuation of about $1.7 trillion, a deal that raised nearly $86 billion for Musk’s company. Only about 4% of SpaceX’s total stock was available for trading, which experts predicted would make the stock more volatile.
That appeared to be the case Tuesday, with traders exchanging more than 300 million shares of SpaceX stock throughout the trading day. That represents more than half of the 555 million shares available on the public market after the IPO, according to data from the Nasdaq stock exchange.
The volatility continued in after-hours trading, with SpaceX’s valuation briefly climbing back above Amazon’s market cap before falling again.
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