SpaceX stock returns to Earth after record IPO

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Shares in Elon Musk’s rocket company SpaceX halted their three-day slide that had erased roughly $600 billion off its market value.SpaceX shares closed at $156.11 with a nearly 1% gain on Tuesday, a slight recovery from a 16% fall on Monday.That loss dropped the stock below $160.95, where it ended the day June 12 after a 19% surge during its record initial public offering.The IPO gave it a market cap of $2.2 trillion, making SpaceX one of the world’s most valuable public companies.It also turned Musk into the world’s first trillionaire, a status he retains despite the sell-off.The downturn probably reflects investor unease over the company’s spending plans and potential debt load, analysts say.

SpaceX raised a total of $86 billion after underwriters exercised their right to sell additional shares, on top of the $75 billion initially raised.It was the largest IPO in history.

Business SpaceX shares rose 19% in the first day of trading Friday after the rocket company’s historic IPO.A little more than half a billion shares were distributed to institutional and retail investors at a price of $135, with the stock opening at $150 as some holders immediately flipped shares for a profit.Shares rose as high as $176.52 during the IPO before settling at the $160.95 price.In the weeks since, shares reached a high of $225.64, meaning that some investors lost money or are underwater with paper losses.Since the IPO, SpaceX has dropped some big bucks.It announced last week that it was acquiring AI coding startup Cursor for $60 billion in a deal expected to close in the third quarter.

The San Francisco company, founded in 2022, enables engineers to instruct software in English to run coding tasks autonomously.It also is preparing a $20-billion bond issue, which is unusual for a company that just went public, much less for one that just raised a record sum.The IPO surpassed the 2019 off...