Elon Musk became the world's first trillionaire when SpaceX floated on the stock market a month ago. Now, the rocket company's share price has dropped below its initial listing, falling sharply from a post-float peak.
The price for a single share fell to $132.62 (£98.24) on Wednesday, below SpaceX's initial public offering (IPO) of $135 in June. Compared to its on-the-day high so far, the stock is down 41%. If the price holds or falls further, those who bought around the time of the flotation stand to lose money on their investment.
“SpaceX shares drop 41% from peak, fall below $135 IPO price after a month of volatile trading.”
Even amid a tumultuous few weeks for tech stocks, SpaceX has taken a particular hit. The Nasdaq index, where SpaceX's shares are listed, fell 0.2% on Wednesday; SpaceX dropped more than 2%. The stock has been volatile since it began public trading.
After an initial investor frenzy that valued the company at more than Amazon and Microsoft, the share price has drifted downward. Initially, SpaceX was treated by investors as the first chance to invest in an AI company, according to financial market analysts and experts who recently spoke to the BBC.
Earlier this year, SpaceX acquired Musk's AI start-up xAI, recently renamed SpaceXAI, marking its first foray into an AI-focused business. xAI is best known for the controversial chatbot Grok; through the acquisition, SpaceX now leases data centre capacity to other tech companies.
SpaceX's main business remains the manufacture and launch of rockets and Starlink telecommunications 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," Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters. "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. The company is expected to release its first public earnings report in August, which may provide a clearer picture of its financial health.