SpaceX’s stock faced a major test as shares dropped below their initial public offering (IPO) price for the first time since entering the public market.
The decline came after an explosive start that pushed the company’s valuation higher and fueled strong investor excitement.
However, concerns about spending, debt, and future expansion plans have started to influence market sentiment.
SpaceX Stock Falls Below $135 IPO Level
Shares of SpaceX fell below the IPO price of $135 during Wednesday morning trading, marking a sharp reversal from the company’s early market performance. After going public, the stock gained more than 50% within its first few trading days, creating strong momentum around the Elon Musk-led company.
The stock later recovered slightly and closed the session at $135.27, remaining just above its original offering price. The move showed that even one of the world’s most valuable companies can face pressure after a highly anticipated market debut.
SpaceX’s IPO initially valued the company at approximately $2.2 trillion, placing it among the largest public companies globally. The offering also briefly pushed Elon Musk’s estimated wealth to around $1 trillion before his net worth later settled near $800 billion.
Massive IPO Raised Billions for Expansion
SpaceX raised $75 billion through its IPO, and the total reached $86 billion after underwriters exercised additional share options. The offering became the largest IPO ever recorded.
Shortly after its market debut, SpaceX joined the Nasdaq-100 on July 7 after a rule update allowed newly listed companies to enter the index just 15 days after their IPO.
The company remains a major force in the space industry. Based near Austin, Texas, SpaceX operates the Falcon 9 rocket program, which handled the majority of satellite launches worldwide last year. Its Starlink service has also made the company a leading provider of satellite-based broadband internet.
Investor excitement around the IPO was partly connected to Musk’s long-term artificial intelligence plans, including concepts such as solar-powered satellite data centers designed to support AI computing needs.
AI Expansion Raises Investor Questions
After the IPO, SpaceX increased its focus on artificial intelligence investments. The company announced plans to acquire AI coding startup Cursor in a reported $60 billion deal, with completion expected in the third quarter. Founded in 2022, the San Francisco-based company helps software engineers automate coding tasks through natural language instructions.
Earlier in the year, Musk combined his artificial intelligence company xAI with SpaceX. The merged business later announced agreements to provide computing capacity to AI companies, including Anthropic and Google, through two data centers.
While these moves highlight SpaceX’s broader technology ambitions, investors have raised concerns about the company’s growing expenses and debt commitments.
More Stock Pressure Could Follow
Additional volatility may continue as employee and former employee shares become available after IPO restrictions expire. At least 20% of locked-up shares are expected to enter the market after SpaceX reports second-quarter results, with all lockup periods ending in December.
SpaceX’s early stock performance also follows a pattern seen with other major technology companies. For example, Meta Platforms struggled after its 2012 IPO. Shares of the company, originally priced at $38, dropped nearly 50% and reached a low of $19.69 in August 2012 before eventually recovering. The stock returned above its IPO price in July 2013, more than a year after its public debut.
SpaceX’s move below its IPO price highlights the challenges that come after a highly successful market launch. The company still holds a strong position in rocket services, satellite internet, and emerging AI projects, but investors are now watching spending decisions and future growth plans more closely.
The coming months will reveal whether SpaceX can rebuild the early momentum that followed its historic public offering.