SpaceX falls to $135 IPO price ahead of Starship launch

On Wednesday, SpaceX's stock dipped to just above $135, matching the price set by CEO Elon Musk for its highly anticipated IPO on June 12, which garnered nearly $86 billion. Throughout the day, shares fluctuated, briefly falling below $133 before recovering slightly to close at $135.27. This decline marks a continuation of a trend since the company's market debut. Initially, SpaceX's stock soared to over $200 shortly after going public, positioning it alongside tech titans like Amazon and Microsoft. However, it has faced consistent depreciation week after week since that peak. One factor contributing to this instability is the limited trading availability of its shares, with only 4% of the total stock floating on Nasdaq. This restricted supply, coupled with heightened public interest in SpaceX, has led to significant price volatility during its first month of trading. Additionally, the broader downward trend in tech stocks seems to have influenced market sentiment regarding Musk's ambitious vision for the company. The implications of a sustained downturn for SpaceX could be far-reaching, as its stock performance serves as a barometer for investor confidence in Musk's lofty aspirations. Meanwhile, the effects are also being felt in the bond market, as securities issued by the company post-IPO are experiencing declines. SpaceX's IPO has set a precedent for other major tech firms like Anthropic and OpenAI, both of which have confidentially filed for IPOs. While neither has announced a public offering date, SpaceX's stock performance will likely be scrutinized for indications of potential success in their own market entries. As the company prepares for another critical moment, it is set to launch its Starship rocket for the first time since the IPO. This test will be pivotal, occurring after a booster failure in May. Notably, SpaceX has opted not to attempt recovery of the Starship's booster or upper stage during this flight, with both components expected to end in a controlled explosion, regardless of the flight's success. Investors and industry watchers alike are keenly anticipating this test, which could further influence the stock's trajectory.