SpaceX stock falls to $135 IPO price ahead of Starship launch

San Francisco, USA – SpaceX's stock price dipped to just above $135 on Wednesday, approaching the valuation set at the company's initial public offering (IPO) on June 12. The shares experienced some volatility, briefly trading below $133 before recovering slightly to close at $135.27.

The recent price movement follows a steady decline since SpaceX went public. In the initial days after its IPO, the company's stock surged to over $200 per share, briefly rivaling the market capitalizations of tech giants like Amazon and Microsoft. However, the shares have consistently lost value each week since reaching that peak.

Market analysts attribute some of the stock's volatility to the limited "float" – only 4% of SpaceX's total shares are available for trading on the Nasdaq. This scarcity, combined with the intense public attention on the company, has contributed to significant price swings during its first month as a public entity.

The broader market sentiment also appears to be tempering expectations regarding CEO Elon Musk's ambitious long-term goals for SpaceX. This sentiment is reflected not only in the stock price but also in the performance of bonds the company sold following its IPO, which have also seen a decrease in value.

A sustained downturn in SpaceX's stock could have wider implications for the industry, as its valuation is seen as an indicator of investor confidence in Musk's futuristic promises. The company's IPO has also set a precedent for potential future public offerings by other major tech players like Anthropic and OpenAI.