After its initial public offering (IPO), SpaceX experienced severe market volatility. On Tuesday, spurred by an announcement of acquiring AI coding company Cursor in a $60 billion stock deal and coinciding with the official launch of options trading, SpaceX’s share price surged again, pushing its market capitalization briefly to $2.9 trillion—temporarily surpassing Amazon as the world’s fifth-largest publicly traded company by market cap and even approaching Microsoft. Notably, despite generating revenue of $18.7 billion last year, SpaceX recorded a net loss of $4.9 billion, significantly lagging behind Amazon’s profit of $78 billion projected for 2025. The rally was largely driven by investor optimism regarding the prospects of its AI business: the company is currently negotiating computing power leasing partnerships with Anthropic and Google, and plans to include Cursor’s revenues in its third-quarter financial report. Just on Friday, SpaceX raised nearly $86 billion through an IPO at approximately a $1.7 trillion valuation, yet merely 4 percent of shares were made freely tradable. Trading volume throughout Tuesday exceeded 330 million shares, more than half of the float, underscoring highly speculative characteristics. Although the acquisition of Cursor is viewed as Elon Musk’s core strategic move within his restructuring of xAI—which has been folded into SpaceX—the extremely limited free float combined with heavy asset losses continues to cause fluctuating market sentiment. By closing time and during after-hours trading, SpaceX’s market value had already declined substantially, as investors recalibrated valuations amid tensions between grand AI narratives and actual earnings reports.