SpaceX stock erases all its gains and slides below IPO price in intraday trading

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Set us as preferred SpaceX stock dropped below its initial public offering price for the first time on Wednesday, signaling dwindling hype around the Elon Musk company.Shares dipped below their IPO price of $135 on Wednesday morning for the first time since listing, a humbling loss for the stock, which had skyrocketed more than 50% in its first days of trading last month.The shares regained some ground later in the day, closing at $135.27.The initial offering gave the company a market cap of $2.2 trillion, making it one of the world’s most valuable public companies.

For a short period, the IPO also made owner Elon Musk the world’s first trillionaire, though his net worth now is about $800 billion.On July 7, the company was added to the Nasdaq-100 after a rule change allowed companies to join 15 days after their IPOs.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.SpaceX, based near Austin, Texas, is the leading launch services company in the world, with its Falcon 9 rocket accounting for the vast majority of satellites launched last year.It is also the leading satellite-based broadband provider with its Starlink service.

The extraordinary interest in the IPO was driven by Musk’s plans to make the company an AI leader — including plans to launch orbiting satellite data centers powered by the sun that crunch AI data.The company’s headquarters moved from Hawthorne to Texas in 2024, but it retains large operations in the South Bay city and blasts off regularly from Vandenberg Space Force Base in Santa Barbara County.Since the IPO, SpaceX has used its newfound wealth to expand in the AI space.It announced last month that it was acquiring the AI coding startup Cursor for $60 billion, with ...