Elon Musk’s SpaceX sinks below IPO price weeks after blockbuster listing

SpaceX stock price: If you invested in the world’s largest IPO, the value of your investment is now less than what you paid.

The shares of SpaceX, which debuted on the tech-heavy Nasdaq at an eye-watering $1.77 trillion valuation, are now trading below their initial public offering price just a month after the rocket and AI company’s market debut.

Unprecedented fundraise drives executive net worth

The company had raised an unprecedented $75 billion and catapulted its owner, Elon Musk, to becoming Earth’s first trillionaire.

Steep percentage decline from intraday peaks

The price of a SpaceX share fell about 2 per cent to $132.62 on Wednesday, dropping below its initial listing of $135 in June. When compared to the on-the-day high so far metric, SpaceX stock price has plunged to 41 per cent, BBC reported.

Market volatility ahead of upcoming flight test

SpaceX stock crash comes ahead of the Texas-headquartered company’s 13th Starship test flight, which is scheduled for Thursday. Shares of SpaceX have remained volatile since its market debut a little over a month ago.

Investor frenzy fueled by artificial intelligence acquisition

After SpaceX acquired Musk’s artificial intelligence (AI) startup xAI earlier this year, the SpaceX IPO was being viewed by investors as their first investment in an AI company, and the IPO was successful in creating an investor frenzy, which saw SpaceX being valued at more than Amazon and Microsoft.

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Core space operations combined with digital infrastructure

The main business of SpaceX is manufacturing and launch of rockets and telecommunication satellites known as Starlink, but when the company acquired xAI, recently rebranded as SpaceXAI, it got hold of data centres which it leases to other tech companies. xAI is known for social media platform X (formerly known as Twitter) chatbot Grok.

According to Daniela Hathorn, senior market analyst at Capital.com, “The stock’s retreat seems to be a combination of profit-taking, valuation reassessment and the unwinding of extremely bullish positioning following one of the most anticipated listings in recent years,” Reuters reported.