SpaceX shares are dropping hard, bad news for recent buyers and a warning sign for the whole AI-fueled tech rally.

• SpaceX stock fell 16% in one day, its third straight loss, and is far below its post-IPO peak near 225 though still above the IPO price.
• The company is bleeding cash, with billions in losses last year and again early this year, while taking on more debt and raising new bond money.
• Most insider shares are still locked up, so heavy employee selling is expected to start within months and could push the price down further.
• The selloff hit Nvidia, Google, Microsoft, Amazon and others too, partly on fears the AI boom is overbuilt and after high-profile staff exits from Google.
• A big chunk of SpaceX's revenue now comes from renting AI computing power to startups like Reflection AI, deals that could collapse if AI funding dries up.

Outlook: If the AI bubble keeps deflating and share lockups expire, SpaceX and the broader tech market likely face more downside.