SpaceX will report earnings Tuesday. What might it mean for investors and Elon Musk?

Shares of Elon Musk-led SpaceX have plunged nearly 50% in value below a peak attained on June 16 in the frenzied aftermath of its initial public offering (IPO), which was the largest in history.

The aerospace company may reverse some of those losses on Tuesday after the release of its first-ever quarterly earnings report, which will provide a look at the firm’s balance sheet, some analysts told ABC News.

“This will move the stock. Whether it goes up or down, that’s hard to say,” Jay Ritter, a professor of finance at the University of Florida, told ABC News.

SpaceX joined the Nasdaq 100 last month, clearing the way for its inclusion in 401(k) accounts, many of which track funds pegged to the index.

The results hold financial implications for shareholders, including Musk, whose net worth briefly exceeded $1 trillion immediately following the IPO before dropping below that benchmark as shares fell, according to Forbes.

Here’s what to know about what SpaceX earnings mean for investors and Musk.

What's happened to SpaceX stock since the IPO?

SpaceX stock has swung dramatically in value since the company’s public listing.

SpaceX stock soared in the days following its IPO on June 12. At its peak, the share price reached $225, marking a rise of 66% in four days. The buying spree launched SpaceX into orbit among the world's five-largest companies by market capitalization, elevating its value beyond Amazon and Meta.

The share price has tumbled since then, however. Some analysts attributed the drop-off to sputtering demand as investors moved past the company's splashy listing and took a closer look at its bottom line.

On July 16, SpaceX called off its first attempted launch of Starship since the IPO due to an engine failure during ignition. The stock dipped in after-market trading following the incident.

In pre-market trading on Tuesday morning, the stock price stood at about $116 a share, 14% below the IPO price of $135.

SpaceX builds and operates spacecraft, including thousands of satellites deployed in support of its Starlink satellite internet service. The company also oversees xAI, a Musk-led AI firm that offers a chatbot in competition with the likes of OpenAI's ChatGPT and Anthropic's Claude.

Musk's company has divided stock analysts, some of whom tout its earnings potential in the lucrative aerospace and AI industries, even as others bemoan what they view as pie-in-the-sky initiatives, such as space-bound data centers.

What does the SpaceX earnings release mean for investors?

Tuesday's SpaceX earnings report will offer the first look at the company’s financial health since it opened its books to public scrutiny ahead of the IPO.

The company's revenue jumped to $18.7 billion in 2025, soaring 33% compared to the previous year, a U.S. Securities and Exchange Commission financial filing earlier this year showed. Nearly a quarter of that revenue came from Starlink, which then counted millions of subscribers.

Even so, SpaceX failed to turn a profit last year, registering a loss of $4.9 billion.

“We want to see some move toward profitability. We know it’s not profitable today and it probably won’t be for some period of time,” Dominic Pappalardo, chief multi-asset strategist at Morningstar Wealth, told ABC News. “We’d like to see that gap narrow.”

Starlink, the main driver of the company’s profits, will draw close scrutiny from investors eager for growth, Ritter said.

“You can grow revenue either by increasing the number of subscribers or what price subscribers are paying,” Ritter said. “I think Wall Street analysts are going to pay attention not only to the growth rate and number of subscribers for Starlink but also to the growth rate in revenue.”

Regardless of Tuesday's earnings report, SpaceX shares could face headwinds later in the week, some analysts said.

A lockup period is set to expire on Thursday, allowing insiders to sell millions of additional shares. More than 900 million shares of SpaceX will be made available to trade, more than doubling the total available shares, investment bank Macquarie said in a note to investors shared with ABC News.

"When IPO lockups expire it does put downward pressure on that stock price because it increases the supply of shares on the market," Pappalardo said.

What does the SpaceX earnings release mean for Elon Musk?

Musk, the wealthiest person alive, became the first-ever trillionaire after the SpaceX IPO, but the moniker proved short-lived.

The company's founder and CEO owns roughly four out of every 10 SpaceX shares. Prior to the stock listing, Musk boasted a net worth of about $780 billion, according to Forbes. In mid-June, within days of the IPO, Musk's wealth rocketed as high as $1.45 trillion, Forbes said.

The stock's struggles, however, slashed Musk's net worth. As of the close of trading on Monday, Musk's net worth was $725.9 billion, Forbes data showed.

Musk has also shed wealth due to a decline in the stock price of Tesla, another company in which he holds a large stake. Shares of Tesla have fallen about 28% since the start of the year.

"Two of his very large holdings have both moved lower pretty dramatically. That has obviously hurt his net worth," Pappalardo said.