SpaceX Falls Below IPO Price After 42% Drop
SpaceX shares closed at $131.11 on July 16, below the $135 IPO price for the first time since June. The stock is about 42% below its $225 peak.
SpaceX closed at $131.11 on July 16, finishing below its $135 initial public offering price for the first time since the company’s June debut. The share price is roughly 42% lower than its near-term high of about $225.
The company completed a record $86 billion IPO on June 12. Shares rose 19% on the first trading day to close at $161 and reached about $225 within the first month before a sustained decline. Traders recorded an intraday low of $132.75 earlier in the week; the stock briefly recovered to $135.27 before the July 16 close eliminated that cushion.
Analysts and market participants cited several factors behind the pullback: investors locking in gains after the high-profile listing, a reassessment of SpaceX’s valuation, a failed launch attempt of the upgraded Starship V3, concern about upcoming lock-up expirations that will allow early shareholders to sell, and pressure across the broader technology sector. Some on Wall Street have described SPCX as a “broken IPO.”
SpaceX disclosed holdings of 18,712 bitcoins, valued at about $1.19 billion at current prices, making it one of the larger corporate bitcoin treasuries. Combined with Tesla’s 11,509 BTC, companies tied to Elon Musk hold more than 30,000 BTC. Michael Saylor, head of strategy at MicroStrategy, noted after the IPO that many of the largest technology companies now hold bitcoin on their balance sheets.
The stock’s volatility had wider effects. An earlier plunge in SpaceX shares erased roughly $150 billion from Elon Musk’s net worth in a single day, while some investors, including funds, bought the dip. Bitcoin traded just below $63,000 on July 16, down about 1.9% as risk assets pulled back.
Investors will watch three near-term items for signs of a change in the stock’s direction: the timing and scale of lock-up expirations, the return-to-flight timeline and reliability of the Starship V3 program, and SpaceX’s first earnings report as a public company. These events could affect available supply of shares, operational momentum and investor assessments of the company’s financial outlook.
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