SpaceX’s share price has fallen below its stock market debut, dropping to $132.62 on Wednesday – below the $135 listing price from its June initial public offering that made Elon Musk the world’s first trillionaire. The stock is now down 41% from its on-the-day high, meaning investors who bought around the float could face losses if the price holds or falls further.
The decline comes amid a tumultuous period for tech stocks, but SpaceX has been hit particularly hard. On Wednesday alone, its shares fell more than 2%, compared with a 0.2% drop on the wider Nasdaq index where it is listed. The company’s stock has been volatile since it began trading just over a month ago, after an initial frenzy that briefly valued it higher than Amazon and Microsoft.
“SpaceX share price fell to $132.62, below its $135 June IPO, down 41% from peak.”
Financial analysts told the BBC that investors initially treated SpaceX as their first chance to invest in an AI company. That bet came after SpaceX acquired Musk’s AI start-up xAI, now renamed SpaceXAI, which is best known for the controversial chatbot Grok. Through that deal, SpaceX leases data centre capacity to other tech companies. But its core business remains 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 plunged 8%. Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters: “There hasn’t been anything lately to remind people of some of the catalysts for why they bought SpaceX.”
SpaceX 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.