SpaceX’s shares declined to just above $135 on Wednesday, the price set by CEO Elon Musk for the company’s IPO on June 12, which raised nearly $86 billion. The stock traded below this IPO price for much of the day, dipping beneath $133 before closing at $135.27.
Since going public, SpaceX’s stock initially surged to over $200, but it has followed a downward trend in the weeks following the IPO. The company has experienced a loss in share value almost every week since reaching that high point.
Only 4% of SpaceX’s total shares are available for trading on the Nasdaq, a factor contributing to the stock’s volatility. This small “float” has resulted in significant price fluctuations amid heightened attention on the company.
The general decline in technology stocks has also impacted SpaceX’s shares and its bonds, which have faced similar challenges since the IPO. A sustained downturn for SpaceX could indicate shifting investor sentiment towards Musk’s ambitious plans for the company.
SpaceX’s IPO may have broader implications for other tech firms, such as Anthropic and OpenAI, both of which have confidentially filed for IPOs. Neither company has announced a public offering date, but they are closely monitoring SpaceX’s stock performance as a potential benchmark.
On Thursday, SpaceX plans to conduct a test launch of its Starship rocket, marking the first flight since the IPO. This test follows a booster failure in May and will not include efforts to recover the booster or upper stage, with both expected to simulate a landing in the Gulf of Mexico and conclude with an explosion regardless of the flight’s success.
