SpaceX shares fell below their IPO price for the first time on Wednesday, just over a month after the company’s record market debut drew huge investor interest and made Elon Musk the world’s first trillionaire.
The stock dropped 1.7% to $134, slipping below its IPO price of $135 a share. It is now well below its record high of $225.64, a level that had briefly pushed SpaceX’s market value above Microsoft and Amazon.
The fall means investors who bought shares at the IPO price are now sitting on paper losses for the first time. It also marks a sharp change in sentiment for a company that had become one of Wall Street’s biggest post-listing stories.
SpaceX raised about $85.7 billion in its IPO, the largest ever, and ended its first trading day with a valuation of around $2.1 trillion. The listing drew strong demand from investors betting on the company’s rocket business, satellite network and long-term artificial intelligence plans.
But the recent decline shows how quickly market enthusiasm can cool, even for a company with SpaceX’s profile and scale.
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Stocks often fall below their IPO price, especially when broader markets are weak. Wall Street’s main indexes have been under pressure in recent weeks as investors reassess the Federal Reserve’s interest rate path and question whether the AI-led market rally can continue.
Still, SpaceX’s drop may strengthen the argument of critics who had warned that the company’s valuation was too high. The company remains unprofitable, and several of its most ambitious business plans are still at an early stage.
The fall also highlights the risk of buying a stock mainly on momentum and future expectations. SpaceX’s valuation has been driven heavily by its growth story, Musk’s profile and hopes around future businesses, rather than near-term profits.
Even its inclusion in major indexes has not helped the stock recover. SpaceX shares have fallen nearly 13% since being added to the Nasdaq 100.
