NEW YORK: SpaceX shares fell sharply on Tuesday, with SpaceX dropping below its market debut price after a volatile trading session triggered by a broader tech sell-off across global markets.
The company’s stock slipped under its initial public offering price of $150 per share, briefly erasing hundreds of billions in market value before recovering slightly later in the day.
The decline followed a steep 16 percent drop on Monday, which had already wiped out around $400bn in value. Despite the losses, shares remain about 10 percent above the $135 IPO level.
The sell-off comes after a strong post-listing rally that had pushed SpaceX to record highs and significantly boosted the wealth of CEO Elon Musk, who briefly became the world’s first trillionaire during the surge.
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At its peak, SpaceX had overtaken major technology firms such as Microsoft and Amazon in market valuation before sliding to a lower market capitalisation of around $1.9bn, according to trading data.
Analysts said the broader correction reflects heightened volatility in newly listed mega-cap technology stocks, particularly those closely linked to artificial intelligence and space technology ambitions.
Despite the sharp fall, some market strategists remain optimistic. Michael Monaghan, partner portfolio manager at FounderETFs, said sharp sell-offs in high-profile stocks often create conditions for recovery.
“I think any time you see a stock sell off sharply, especially one that everyone is focused on, and then bounce, it’s usually a setup for it to move higher,” he said.
The company’s valuation swings also come amid new artificial intelligence-related partnerships. SpaceX recently signed a deal with AI startup Reflection AI, granting access to its Colossus 2 data centre in exchange for significant monthly payments.
Earlier this month, reports also indicated a major agreement with Google, under which the tech giant would contribute substantial monthly payments as part of expanded compute and infrastructure collaboration.
A Reuters analysis noted that investors in many recent large IPOs have often performed better by tracking broader index funds such as the S&P 500 rather than investing directly in newly listed companies, highlighting the risks of concentrated exposure.
Market watchers said the latest movements reflect both profit-taking after rapid gains and uncertainty about the long-term valuation of high-growth technology firms in a shifting macroeconomic environment.
