SpaceX equity traded at $134.80 in Thursday premarket activity, the first breach of its $135 initial public offering price set during the company's February direct listing. The $86 billion valuation that carried the shares to market lasted eighteen trading days.

The stock opened at $138.20 on February 3rd and touched $147.60 on February 11th before reversing. Volume patterns show institutional distribution starting February 14th, three sessions before the technical break. Short interest climbed 340 basis points in the same window, according to S3 Partners data, with $2.1 billion in aggregate short positions now outstanding against the $12.4 billion float.

The decline matters because SpaceX carries structural leverage most technology listings avoid. The company operates 6,200 Starlink satellites generating $4.8 billion in projected 2025 revenue, but also holds $8.3 billion in NASA and Department of Defense contracts that require continuous capital deployment. Free cash flow in 2024 was negative $1.9 billion despite record launch cadence. The IPO was meant to backstop expansion capital for the Starship program, which burned $2.6 billion last year across six test flights. When the stock trades below offering price, follow-on equity becomes expensive and the capital structure tightens.

Short sellers are pressing two arguments. First, the $86 billion enterprise value implies Starlink alone is worth $70 billion at 14.6x forward revenue, a SaaS multiple applied to a capital-intensive satellite operator with 23% EBITDA margins. Second, Musk's public timeline for Mars missions—first uncrewed Starship landing by late 2026—creates binary technical risk that the IPO prospectus disclosed but investors initially ignored. The reference class here is not Meta, which had $5.1 billion in positive free cash flow at IPO despite a post-offering dip. It is Rivian, which also broke IPO price within weeks and required balance-sheet repair.

Allocators should watch three items over the next ninety days. Starship test flight seven is scheduled for April, and any propulsion or re-entry failure will move the equity. The Department of Defense's fiscal 2026 budget proposal, due mid-April, will clarify whether SpaceX's $3.2 billion in awarded contracts expand or plateau. And Musk's 48% ownership stake comes with $13 billion in margin loans against Tesla shares; a mark-to-market margin call would surface in Tesla's April 22nd earnings filing, creating cross-equity contagion risk.

The IPO was priced at 18x forward revenue and 74x forward EBITDA. The first metric assumed Starlink subscriber growth from 3.1 million to 8 million by year-end 2026. The second assumed Starship would fly payloads commercially by Q3 2025, unlocking $600 million in deferred backlog. Neither assumption has been revised, but the market is now pricing 40% probability that one or both miss. The stock is 7% below offering price. The warrants that trade separately are down 22%.