SpaceX Stock Falls Below IPO Price Ahead of Starship Test

SpaceX's stock has fallen below its initial public offering price of $135 per share, a level set by CEO Elon Musk and the company during its June 12 IPO which raised nearly $86 billion. The shares briefly traded below $133 on Wednesday afternoon before recovering to hover around the IPO price.

This price drop follows a steady decline over the month since the company went public. Initially, SpaceX's stock surged to over $200 in the days following its IPO, briefly rivaling the market capitalization of tech giants like Amazon and Microsoft. However, the stock has lost value almost weekly since reaching that peak.

Market analysts attribute some of the volatility to the small public float, with only 4% of SpaceX's total shares trading on the Nasdaq. This limited supply, combined with intense media attention, has created significant price swings in the company's first month of public trading.

Investors also appear to be tempering expectations regarding CEO Elon Musk's ambitious long-term vision for the company. This sentiment aligns with a broader downturn in the tech stock market over the past month. The downward pressure on SpaceX's stock is mirrored in the performance of bonds the company sold post-IPO.

The company faces another test of its stock's resilience as it prepares for a Starship rocket test launch on Thursday. Starship is still under development, and its "fly, fail, fix" approach carries inherent risks that could influence investor sentiment and the company's stock performance.