SpaceX IPO Would Test A Brutal Truth: Most IPOs Since 2021 Destroyed Value

If SpaceX goes public, it won't just be the most anticipated IPO in years — it will walk straight into a market still haunted by the class of 2021. Because the last time IPOs boomed, they didn't just disappoint. They destroyed value at scale.

For Elon Musk, SpaceX could become the ultimate test of whether blockbuster IPOs can still deliver — or just repeat 2021's mistakes.

The IPO Graveyard

As reported by The Information, many of the companies that went public during the 2021 frenzy have since collapsed.

Allbirds, Inc. (NASDAQ:BIRD), once valued at $2.2 billion, is now being sold for just $39 million. BuzzFeed, Inc. (NASDAQ:BZFD) has seen its market cap shrink to roughly $23 million from over $1 billion at debut, even raising concerns about its ability to continue as a going concern.

Others didn't fare much better. Rent the Runway, Inc. (NASDAQ:RENT) lost control to lenders. Stocks like UiPath, Inc. (NYSE:PATH), GitLab Inc. (NASDAQ:GTLB), and Warby Parker Inc (NYSE:WRBY) are still trading 70%–80% below IPO levels.

The pattern was clear: overvaluation, peak timing, and slowing growth — often all at once.

A Different Kind Of IPO

That's what makes SpaceX different — and risky in a different way.

Unlike many 2021 names, SpaceX isn't coming public at peak hype with an unproven model. It's a scaled, revenue-generating business with global relevance.

But that doesn't mean investors will forget what happened last time.

If anything, it raises the bar.

Trust, Not Just Demand

The real question isn't whether SpaceX can attract demand.

It's whether investors — especially retail — are willing to trust another high-profile IPO after years of underperformance.

Because the lesson from 2021 wasn't subtle: growth stories can be compelling. Returns, less so.

SpaceX may be the exception.

But if it goes public, it will still have to prove one thing the last cycle couldn't: that IPO investors can actually win again.

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