SpaceX stock is falling fast ahead of its first earnings report, which is bad news for retail investors who bought in at the IPO and could get worse as insiders gain the right to sell.

• SpaceX has lost over half its value since going public in June, wiping out a huge amount of market cap in weeks.
• The company is burning billions each quarter, carries almost twice as much debt as cash, and trades at nosebleed levels versus its actual sales.
• Rolling lockup restrictions start expiring in the coming days, letting early employees and investors sell for the first time — many are expected to dump shares.
• Weak Tesla earnings and fears that the AI boom is deflating are adding pressure and pulling confidence out of the whole sector.
• A deeper SpaceX slide could drag down market indices and other AI-related stocks with it.

Outlook: More share unlocks and a shaky AI mood point to further drops, with the first earnings report as the next big test.