Elon Musk’s rocket company SpaceX saw its share price fall below its stock market debut on Wednesday, sliding to $132.62 — below the $135 listing price in June — as the initial frenzy over its artificial intelligence ambitions appeared to dissipate.
The stock, which made Musk the world’s first trillionaire when it floated, is now down 41% from its post-float peak. The decline marks a stark reversal for a company that was briefly valued higher than Amazon and Microsoft after investors piled in, treating it as the first opportunity to buy into an AI-focused business.
“SpaceX stock falls to $132.62, 41% below peak, as investor AI enthusiasm wanes.”
SpaceX entered the AI space earlier this year when it acquired Musk’s start-up xAI, recently renamed SpaceXAI and best known for the controversial chatbot Grok. Through that acquisition, the company now leases data centre capacity to other tech firms. But its core business remains the manufacture and launch of rockets and Starlink telecommunications satellites.
Wednesday’s drop came even as the wider Nasdaq index fell just 0.2%. SpaceX shares slid more than 2% in a single day, adding to a volatile month of trading since the IPO. One trigger was Starlink’s decision to cut prices in the Memphis, Tennessee area amid local concerns over a massive data centre project — prompting an 8% fall in SpaceX shares.
“There hasn’t been anything lately to remind people of some of the catalysts for why they bought SpaceX,” Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters. He added: “The fact that a stock has fallen a couple of dollars below its IPO price in itself is not a tragedy, but SpaceX is heavily watched and has an important role in investor psyche.”
Investors who bought around the flotation now face the prospect of losses if the price holds or falls further. All eyes will be on SpaceX’s first public earnings report, expected in August. The company did not respond to a request for comment.