SPCX - Visionary Empire or Vampire Trap ?
$SpaceX(SPCX)$ has turned into a brutal roller coaster ride for investors.
The company recently pulled off the biggest initial public offering (IPO) in stock market history, raising a massive $85.7 billion.
Price Rollercoaster.
The stock’s IPO price was $135 /share and SPCX started trading at $150 on Fri, 12 Jun 2026.
Driven by intense hype around space flight and a massive $26.5 trillion total addressable market in artificial intelligence (AI), investors rushed in.
The stock quickly shot up +66%, peaking at over $225 per share. (see below)
Who would have guessed with pinpoint accuracy, that the excitement would evaporate in just 2 weeks.
Vampire Stock.
On Tue, 23 Jun 2026, SPCX shocked the market by announcing it needed even more cash.
{Does this remind you of Musk's lawsuit against Sam Altman for trying to turn OpenAI into a for-profit company ? It’s a joke right !}
It immediately sold off bonds to raise another $25 billion, in less than 2 weeks after staging the massive IPO.
This brought its total cash pile to over $100 billion.
Investors panicked over this sudden need for money, causing the stock to crash -16% in a single Monday. (see above)
It has now given back most of its post-IPO gains and is sitting right back down at the $170 mark.
Market experts are still warning that the stock is still heavily overvalued. They categorically state that it is absolutely not time to buy until the price drops below the original $135 IPO price.
Skeptics also question if $100 billion in cash is even enough, given how much money SPCX burns through.
The company has a wild plan to build AI data centers in outer space that are powered by solar energy, aiming to solve power shortages on Earth.
{Will the outer space data center end up just like Musk's promise for self-driving EV, a broken dream that still hasn't come true, 11 years on ?}
Public Corruptive Strategy.
To make matters worse, severe ethical and political red flags are popping up around the company.
Reports show that the Trump administration has been talking with SpaceX about donating company stock to a new government program called "Trump Accounts"—a state-run savings plan for children. (see below)
This kind of backroom discussion looks like a corrupt corporate kickback.
SPCX is a massive government contractor that relies heavily on federal funding.
For Musk to discuss gifting corporate shares to a political ally's pet project is wrong on many levels.
It is a thinly veiled attempt to buy (a) political favours, (b) secure massive government contracts, and (c) protect SPCX business from regulatory oversight.
This cozy, transactional relationship between a private billionaire and the government destroys fair market competition and ruins public trust.
When looking at the big picture, the massive drop in stock price, the endless need for cash, and these dirty political games should make any investor deeply uneasy.
Technical Analysis.
At this point, I want to interject by throwing in a transient technical analysis of SPCX to figure out where the stock might be heading in the very near term. (see below)
Due to its 2-weeks old IPO, the technical indicators of MACD and RSI cannot even be calculated. Even for Simple Moving Average (SMA), only the 5-day and 10-day metrics are available.
Yes, for all the techies out there, there is not much to work with. Still, let’s see what is revealed.
As of Tue, 30 Jun 2026 closing, SPCX closed off the month of June 2026 at $170.86 per share.
This is higher than its SMA of 5-day ($159.16) and 10-day ($168.51), meaning for the month of July 2026, SPCX still maintains a “bullish” momentum.
Ethical Investment.
After all that has been said, everyday investors must ask themselves if they are buying into a real business OR just funding a dangerous, hype-driven vehicle used for political leverage.
Ultimately, the heavy structural & ethical risks surrounding SPCX make it a company that is simply not worth an investor's focus. There are many other fishes in the sea.
The massive gap between SPCX's (a) cosmic ambitions and (b) its volatile financial reality forces a hard choice between an actual investment and a multi-billion-dollar gamble.
While the promise of dominating a brand-new space economy is undeniable, the toxic mix of unquenchable cash burn and erratic political entanglements creates a minefield for regular portfolios.
Ultimately, investors must decide if the business is truly a commercial frontier worth their focus, or simply an unpredictable vehicle heavily dependent on government goodwill.
I have decided way back just before SPCX IPO-ed, have you ?
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Do you think SPCX outer space data centre will befall the same fate as Musk’s FSD driving?
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Do you think without all the theatrics, SPCX will be able to compete on a fair level ground basis against $Rocket Lab USA, Inc.(RKLB)$ ?
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