SpaceX shares slide below IPO price for first time

Elon Musk-owned SpaceX’s shares stumbled below their initial public offering (IPO) price for the first time on Wednesday, just over a month after the company went public.
The process made the South African-born businessman the world’s first trillionaire.
According to Reuters, the share price stumbled as low as $132.28—below the $135 IPO price on Wednesday—before crawling back to close the day’s trading at $135.27.
According to experts, the fall was a reminder that enthusiasm on Wall Street can wane rapidly after the rockets-to-AI firm raised $85.7 billion and briefly propelled the company to a market value of more than $2.6 trillion, surpassing technology giants such as Microsoft and Amazon.
However, SpaceX’s market value dropped sharply to $1.78 trillion on Wednesday afternoon before slowly recovering. Despite the share price closing 28 cents above its IPO price, it marked a 40 per cent decline from a high of $225.64 reached shortly after the stock started trading.
Meanwhile, Justus Parmar, chief executive officer of SpaceX investor Fortuna Investments, attributed the shares’ decline to investors liquidating their holdings in large numbers.
Interactive Brokers’ chief market analyst, Steve Sosnick, stated, “There hasn’t been anything lately to remind people of some of the catalysts for why they bought SpaceX. The fact that a stock has fallen a couple of dollars below its IPO price in itself is not a tragedy, but SpaceX is heavily watched and has an important role in investor psyche.”
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