The stock dropped 1.7% to $134, slipping below its $135 IPO price and extending its decline from an all-time high of $225.64, reached shortly after the company’s public debut, News.Az reports, citing Reuters.
The fall leaves investors who purchased shares at the IPO sitting on paper losses for the first time and highlights how quickly enthusiasm can fade even for one of the world’s most closely watched companies.
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SpaceX completed the largest initial public offering in history in June, raising approximately $85.7 billion and ending its first trading day with a market valuation of around $2.1 trillion. The rally briefly pushed the company above technology giants Microsoft and Amazon by market value and helped make founder Elon Musk the world’s first trillionaire.
Analysts said the recent decline reflects broader market pressures as investors reassess highly valued technology stocks amid uncertainty over the Federal Reserve’s interest rate outlook and concerns about whether the artificial intelligence-driven market rally can be sustained.
The stock has also struggled despite being added to the Nasdaq 100 index, falling nearly 13% since joining the benchmark.
Some market observers had previously argued that SpaceX’s valuation was difficult to justify because the company remains unprofitable and many of its long-term growth projects have yet to prove their commercial potential.
The recent selloff reinforces concerns that much of the company’s early valuation was driven by investor optimism rather than near-term financial performance.
Attention is now turning to SpaceX’s first earnings report as a publicly traded company. The company has not announced a release date but has said it plans to publish its financial results through its website and social media platform X, rather than using traditional wire distribution services.
The upcoming earnings report is expected to provide investors with the first detailed look at whether the company’s financial performance can support the lofty expectations that fueled its blockbuster IPO.
