SpaceX Stock Falls Below IPO Price, Erasing $800 Billion From Market Value

SpaceX's stock price fell below its initial public offering (IPO) price of $135 per share, deepening losses that have erased approximately $800 billion from the company's market value since its peak shortly after the IPO. The stock reached an intraday high of $225 in mid-June, pushing SpaceX's valuation, controlled by Elon Musk, above that of Amazon. This surge followed the company's record-breaking IPO, which raised $86 billion at a valuation exceeding $2 trillion.

Since then, the stock has lost 40% of its value, reducing Musk's 42% stake from about $1.2 trillion to $760 billion. The company's bonds, issued at the end of June, have also experienced sharp declines. An investment banker involved in the IPO described the current period as "a bit complicated for the stock," but expressed confidence in the sophisticated investors now holding shares. Over 20 Wall Street banks participated in the IPO, collectively earning around $500 million in fees, a record for an initial public offering.

The drop in SpaceX's stock aligns with a broader weakness in high-value technology stocks over the past month, driven by concerns about sustained high interest rates in the U.S. and doubts about tech giants' ability to justify massive investments in artificial intelligence. About three weeks ago, SpaceX raised $25 billion through a bond issuance, but these bonds have since become some of the worst-performing investments in the senior bond market.