Key TakeawaysSPCX shares declined to $136.78 on Monday, barely holding above the $135 IPO level after reaching $225.64 in mid-JuneChina successfully recovered a Long March rocket booster on July 10, sparking competitive fears in reusable space launch techCathie Wood’s ARK Invest acquired $21.3 million of SPCX shares Monday through three ETFs, after buying $52M the prior weekAn upcoming lockup expiration — unlocking 20% of shares post-August earnings — is creating downward pressureThe company carries a valuation approaching 50x projected 2026 revenue with no expected profitability this yearSpace Exploration Technologies Corp. (SPCX) has witnessed a dramatic 40% decline from its June 16 peak of $225.64, settling at $139.14 on Monday — a downturn that’s captured significant market attention despite overwhelmingly positive analyst sentiment.Space Exploration Technologies Corp., SPCXThe aerospace company debuted at $135 per share on June 11, jumped to $150 within 24 hours, and climbed as high as $225.64 before entering a steep correction. Monday’s intraday low of $136.78 brought the stock perilously close to breaching its initial offering price.Tuesday’s premarket session showed SPCX down an additional 0.4% to $138.61.Yet analyst conviction remains strong: 80% maintain Buy ratings on the stock — significantly above the typical S&P 500 consensus of 55%–60%. The mean price target hovers around $240, suggesting a potential market capitalization near $3.2 trillion.Evercore ISI initiated coverage Tuesday with a Buy recommendation and $230 target. The market response was muted.Chinese Reusable Rocket BreakthroughOn July 10, China demonstrated successful recovery of a Long March booster using a ship-based cable system — a notable achievement in reusable launch vehicle technology that caught investors’ attention. SpaceX has maintained unquestioned leadership in this critical competitive advantage, forming a cornerstone of the investment thesis.This Chinese demonstration suggests the technological moat may be narrowing, despite SpaceX maintaining superior scale and operational capabilities.Share Lockup and Premium ValuationA technical headwind is compounding selling pressure. Following the company’s inaugural quarterly earnings release — anticipated mid-August — approximately 20% of total outstanding shares will exit lockup restrictions. This substantial supply increase is prompting some shareholders to exit positions preemptively.Valuation concerns persist as well. With a current market capitalization around $1.8 trillion yet no anticipated profitability through 2026, SpaceX commands roughly 50 times forecasted 2026 sales — an elevated multiple even accounting for robust growth projections.ARK Invest Accumulates SharesContrarian activity emerged Monday as ARK Invest acquired 130,241 SPCX shares — approximately $21.3 million — distributed among ARKK, ARKQ, and ARKW funds. This follows the previous week’s $52 million accumulation.The aggressive buying hasn’t reversed the downtrend. Technical analysis shows deteriorating momentum with the MACD indicator turning bearish. Market observers identify $145 as a new resistance zone after previously serving as support. A definitive close beneath $135 would represent a significant technical breakdown below the IPO threshold — a psychologically important marker for market participants.As of Tuesday morning, SpaceX was changing hands at $138.61.The post SpaceX (SPCX) Stock Plummets 40% as Cathie Wood Continues Buying Amid Market Concerns appeared first on Blockonomi.