SpaceX stock price drops after Cursor purchase. How low could it go?

Following SpaceX's IPO on June 12 — the biggest in history, which made Elon Musk a trillionaire — the stock price dipped just days later when the company announced the acquisition of AI coding agent Cursor.

The initial price was $135, and reached over $170 the same day, Mashable reported. By Tuesday, June 16, it hit a high above $225, according to Forbes, but some of those gains were lost by Wednesday.

The $60 billion deal between SpaceX and Anysphere, the startup behind Cursor, was announced on Tuesday. The next day, the price fell five percent, CNBC reported, and dropped another 3.75 percent on Thursday.

The markets are closed today, June 19, with SpaceX's current share price at $185 at the time of this writing. It's dropped slightly today, but it's still well above its IPO share price.

But how low will it go? Investor research firm Morningstar reported that SpaceX is wildly overvalued, with its fair value estimate at $62 a share, and a best-case scenario would price shares at $169. That would be lower than today's price, but still higher than its IPO.

Not everyone believes SpaceX is overvalued, though. Investment bank Oppenheimer and Co. raised its projection for SpaceX stock from $190 to $250 following the acquisition disclosure. Analyst Timothy Horan said that SpaceX "owns every layer of the AI stack, giving it cost and quality advantages," and that Cursor is a major component of that.

So it remains to be seen whether the stock will dip much lower — and unless it dips below $138, Musk remains a trillionaire.