SpaceX shares slide below IPO price for first time as surge fizzles
SpaceX shares have fallen below their IPO price for the first time following a period of intense market volatility. Investors are expressing concerns over the company's heavy debt-funded AI infrastructure spending.
Why it matters
The decline signals a cooling of investor enthusiasm for high-valuation tech firms and highlights risks associated with massive capital expenditure in AI.
A SpaceX rocket lifts off from the Kennedy Space Center in Florida in June 2024./Getty Images A SpaceX rocket lifts off from the Kennedy Space Center in Florida in June 2024./Getty Images SpaceX SpaceX shares slide below IPO price for first time as surge fizzles Shares fall below $135 price after firm completed biggest ever IPO and made Elon Musk world’s first trillionaire
Prefer the Guardian on Google SpaceX shares dropped below their initial public offering price for the first time on Wednesday, just over a month after the rockets-to-AI firm completed the biggest IPO ever and made Elon Musk the world’s first trillionaire.
The shares slid 1.5% to $134, falling below the $135 IPO price and well below last month’s high that briefly propelled the company’s market valuation above those of Silicon Valley giants Microsoft and Amazon, firms with longer public track records and stronger financial results.
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