Elon Musk’s rocket company SpaceX has seen its share price drop below its stock market debut just over a month after floating, falling sharply from a post-float peak. The price for a single share fell to $132.62 (£98.24) on Wednesday, below its initial listing of $135 in June.
SpaceX’s initial public offering made Musk the world’s first trillionaire, but the stock is now down 41% from its on-the-day high. Even amid a tumultuous few weeks for tech stocks, SpaceX has taken a particular hit: its shares fell more than 2% on Wednesday, compared with a 0.2% fall on the wider Nasdaq index where it is listed.
“SpaceX shares fell below their initial listing price, down 41% from peak a month after float.”
After an initial investor frenzy that saw the company valued at more than Amazon and Microsoft, the price has drifted downward. According to financial market analysts and experts, SpaceX was initially treated by investors as the first chance to invest in an AI company. The company acquired Musk’s AI start-up xAI, recently renamed SpaceXAI, which is best known for the controversial chatbot Grok and now leases data centre capacity to other tech firms.
SpaceX’s main business remains the manufacture and launch of rockets and Starlink satellites. When Starlink said it was cutting prices in the Memphis, Tennessee area amid local concerns over a massive data centre project, SpaceX shares fell by 8%.
“There hasn’t been anything lately to remind people of some of the catalysts for why they bought SpaceX,” said Steve Sosnick, chief market analyst at Interactive Brokers. The company is expected to release its first public earnings report in August. Sosnick 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.”
SpaceX did not immediately respond to a request for comment.