SpaceX shares fell below their initial public offering price on Wednesday, a first for the corporation, barely over a month after a frenzy over the rockets-to-AI startup fueled the largest IPO ever and crowned Elon Musk the world’s first trillionaire.
Its shares fell 1.9% to $133.5, falling below the $135 per share IPO price and considerably below the all-time high of $225.64, which had lifted the company’s market worth briefly above that of Silicon Valley behemoths Microsoft and Amazon.
The fall leaves investors who bought into the company at the IPO price with paper losses for the first time, possibly undermining confidence in the stock.
It also serves as a warning that Wall Street euphoria may fade rapidly, even for a business the size and scope like SpaceX, which raised over $85.7 billion and had a valuation of around $2.1 trillion at the end of its first trading day.
Wall Street’s main indexes have been under pressure in recent weeks due to uncertainties about the US Federal Reserve’s interest rate path and questions about the long-term viability of the rise led by AI winners such as chipmakers.
Nonetheless, the decrease may be a symbolic setback and might encourage critics who have argued that SpaceX’s value was stretched, as the firm lost $4.9 billion last year and many of its ambitious bets are still untested.
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