SpaceX Shares Slip 3.9% Following Wells Fargo Price Target Cut

SpaceX (NASDAQ:SPCX) shares fell 3.9% during Wednesday's trading session, closing at $147.55 after hitting an intraday low of $145.55. The decline followed a decision by Wells Fargo & Company to reduce its price target on the stock from $215.00 to $212.00, while maintaining an overweight rating. This adjustment contributed to a broader sell-off, with the stock trading down from its previous close of $153.47.

Trading volume intensified significantly, with 119,997,344 shares changing hands by midday. This represented a 15% increase over the average session volume of 104,775,258 shares, indicating heightened investor activity and liquidity concerns surrounding the recent price action. The market reaction underscores sensitivity to analyst revisions despite mixed broader consensus.

Divergent Analyst Valuations Persist

Wells Fargo’s move stands in contrast to recent actions by other research firms. Zacks Research upgraded SpaceX to a hold rating on June 15, while Arete Research set a much higher price target of $450.00 on August 11. Conversely, KGI Securities downgraded the stock from outperform to hold on June 22, and Moffett Nathanson initiated coverage with a neutral rating and a $131.00 target in July.

The current consensus reflects a moderate buy stance, with an average price target of $221.06 according to MarketBeat data. The distribution of ratings includes two strong buy recommendations, twenty-six buy ratings, eight hold recommendations, and seven sell ratings. This spread highlights the lack of uniformity among institutional investors regarding the company's near-term valuation potential.

Lock-Up Expirations Create Supply Pressure

A significant headwind for the stock is the expiration of share lock-ups, which made approximately 319 million insider shares eligible for sale. These shares, valued between $47 billion and $49 billion, represent a substantial potential supply increase. Analysts identify this added liquidity as the primary source of near-term selling pressure, with additional unlocks expected in the future.

This supply shock coincides with operational challenges in SpaceX’s AI data center expansion. Reports indicate that some facilities have operated for months without backup power, raising concerns about execution and capital spending risks. The company also faces a potential $920 million deadline related to these infrastructure issues, further complicating the business outlook.

Institutional Flows Remain Mixed

Despite the recent sell-off, several institutional investors have added positions during the second quarter. Kerr Financial Planning Corp acquired a new position valued at $566,000, while Burkett Financial Services LLC bought shares worth approximately $70,000. Dogwood Wealth Management LLC also initiated a position with a $139,000 investment, suggesting continued interest from smaller institutional accounts.

Positive sentiment remains driven by Starship reusability and Starlink’s expansion into the wireless market. Pivotal Research initiated coverage with a buy rating and a $220 target, citing these factors as key catalysts. Potential inclusion in the Nasdaq-100 could also generate an estimated $15.5 billion in passive buying, providing a technical tailwind that may offset current supply pressures.