SpaceX shares have fallen below their initial public offering (IPO) price for the first time, wiping out gains made after the company’s blockbuster stock market debut just over a month ago.
Shares of Elon Musk’s rocket, satellite and artificial intelligence company closed at $132.62 on Wednesday, below the $135 IPO price set when the company listed in June.
The decline means investors who bought shares at the IPO and held onto them are now sitting on paper losses. The stock is also down 41 per cent from the record high it reached shortly after listing.
SpaceX has been among the most closely watched stocks since its public debut, with its IPO making Musk the world’s first trillionaire. Investors initially rushed into the stock, pushing its valuation above those of tech giants Amazon and Microsoft.
However, that early enthusiasm has faded as the shares have experienced sharp price swings.
On Wednesday alone, SpaceX stock fell more than 2 per cent, compared with a modest 0.2 per cent decline on the Nasdaq, highlighting growing investor caution.
Analysts say much of the excitement surrounding SpaceX was fuelled by its growing presence in artificial intelligence after acquiring Musk’s AI startup, xAI, now rebranded as SpaceXAI.
The acquisition gave SpaceX exposure to AI infrastructure through data centre services while adding the Grok chatbot business to its portfolio.
Despite this expansion, the company’s core operations remain focused on rocket launches and its Starlink satellite internet network.
Investor sentiment was also dented after Starlink announced price cuts in the Memphis, Tennessee, market amid concerns surrounding a major data centre project, triggering an 8 per cent drop in SpaceX shares.
Market analysts say the stock’s recent weakness reflects a lack of fresh catalysts to sustain the initial rally.
“There hasn’t been anything lately to remind people why they bought SpaceX,” Steve Sosnick, Chief Market Analyst at Interactive Brokers, told Reuters.
He noted that falling below the IPO price is not unusual for newly listed companies but said SpaceX remains one of the market’s most closely watched stocks because of its influence on investor sentiment.
Investors are now looking ahead to August, when SpaceX is expected to publish its first earnings report as a publicly traded company, which could provide clearer insight into the company’s financial performance and future growth prospects.
