SpaceX stock (SPCX) dropped below its $150 initial public offering price on Tuesday, marking its first breach of that threshold since the company’s public debut. The selloff extended a four-day losing streak driven by a broader technology rout, with the stock touching a low of $149.34 before rallying 4% to recover some ground. The move erased more than $600 billion in market value from the space and AI company, according to CoinTelegraph.
SpaceX went public in what was described as a record-breaking IPO, and its shares had surged well above the offer price, reaching a peak of $225.64 last week. Analysts questioned whether the rally had outpaced the company’s fundamentals, a concern echoed by traders cited in BeInCrypto. The recent downturn comes amid a broader tech selloff that has also weighed on companies like Micron Technology and Smart Global Holdings.
Tokenized versions of SpaceX shares, marketed to retail investors, also ran into trouble. CoinTelegraph reported that these tokenized instruments drew more than $1 billion in demand, but many investors received refunds instead of actual shares, raising questions about the infrastructure of tokenized securities. The incident highlights the challenges of offering alternative access to high-demand stocks.
The partial rebound suggests some buyers view the dip as an entry point, though the stock remains volatile. Investors are watching for further choppiness as the company navigates both the selloff and its post-IPO transition. The broader technology sector’s performance will likely continue to influence SpaceX’s near-term trajectory.