The SpaceX share price has stumbled after an explosive and record-breaking IPO. On Wednesday, the stock fell below the issue price of $135 for the first time, closing down 1.92% at $133.47 on the US Nasdaq exchange. This marks the share’s lowest point to date.
Approximately a month ago, SpaceX went public and quickly achieved a valuation of a trillion dollars. Shares were allocated at $135 each, and early investors enjoyed substantial gains during the first trading days, with the stock opening at $150 and reaching $160.95 by the end of the day.
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Significant Loss from Initial Price
From its previous record high, the stock has lost approximately 41% in value, and from its opening price, the decline stands at over 11%.
Led by tech billionaire Elon Musk, the company went public with a considerable valuation premium. Although the rapidly expanding business in satellite internet and rockets showed promise, it arguably did not warrant the ambitious market value, at least from a fundamental perspective.
The company highlighted enormous growth opportunities, particularly in artificial intelligence. Musk merged SpaceX with the messaging platform X and the AI startup XAi a few months ahead of the IPO.
Leading up to the IPO, experts, including German tech investor Philipp Klöckner, expressed skepticism regarding the valuation. You can read Klöckner’s insights on SpaceX’s business model and Musk’s growth ambitions in an interview with Onvista.
