SpaceX shares fell below their initial public offering price for the first time on Wednesday, briefly dropping to $132.28 before recovering to close at $135.27. The stock finished just above the $135 price selected for the company’s record-setting June 12 listing.
The decline continued a month-long retreat from SpaceX’s post-IPO high. Shares climbed above $200 shortly after trading began, briefly pushing the company’s market value beyond $2.6 trillion and above established technology companies including Amazon and Microsoft.
SpaceX raised about $85 billion through the offering, making it the largest IPO on record. The company’s investor updates page lists its public filings, financial reports and announcements following the Nasdaq debut.
Limited Share Supply Adds Volatility
Only a small portion of SpaceX’s total shares are currently available for public trading. That limited float, combined with strong attention from retail and institutional investors, has contributed to sharp price movements since the listing.
The stock has lost value during most weeks since reaching its June peak. Its addition to the Nasdaq-100 earlier this month also failed to reverse the decline.
Investor concerns include SpaceX’s valuation, its debt-funded technology spending and the time required for projects such as Starship and orbital data centres to produce returns. The company reported a $4.9 billion loss last year, according to Reuters.
SpaceX also raised $25 billion through bond sales after the IPO. Those bonds have weakened alongside the stock as investors reassess highly valued technology companies and consider the possibility of higher interest rates.
The next major test could come in early August, when analysts expect SpaceX to publish its first financial results as a listed company. Part of the IPO lock-up period is also expected to expire after the report, allowing some employees and early shareholders to sell portions of their holdings.
Starship Flight Adds Another Test
SpaceX is preparing to launch its 13th Starship test flight on Thursday, July 16. The mission will be the first Starship launch since the company went public and the first since a Super Heavy booster failed during a May test.
The company plans to deploy 20 third-generation Starlink satellites during the flight. The mission is also expected to test changes made to the booster’s propulsion, engine alarm and relight systems following the earlier failure.
SpaceX does not plan to recover the Super Heavy booster or Starship upper stage. Both vehicles are expected to perform simulated landings before entering the water as part of the test programme.
Starship remains central to SpaceX’s long-term valuation because the company wants the rocket to lower launch costs and carry larger Starlink satellites. It is also intended to support lunar missions, deep-space travel and proposed orbital computing infrastructure.
The test will not determine SpaceX’s long-term prospects on its own. However, another major failure could add to investor concerns as the stock trades near its original offering price.
Featured image credits: Wikimedia Commons
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