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[BUSINESS] · United States · 100 sources

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SpaceX shares fall below $135 IPO price, wiping out over $1 trillion in market value

SpaceX’s stock slipped below its $135 IPO price for the first time, closing at $131.11 and later near $127, ending a brief rally that had lifted the price to $225 after the June debut. The decline erased more than $1 trillion from the company’s market valuation, with the share price down roughly 40% from its post‑IPO peak.

Bond investors also reacted sharply: the company’s longest‑dated investment‑grade bonds fell to 90.7 cents on the dollar, pushing yields to 7.5%, the worst performance among 1,450 comparable notes. Short‑selling activity surged, with the float’s short‑interest rising to about 29% and the number of borrowed shares climbing from 40 million to 185 million in three weeks.

Analysts warned that the hype surrounding SpaceX’s valuation may be more dangerous than a crash, noting the firm’s $4‑$5 billion net losses and massive capital‑expenditure needs for Starlink, AI, and launch operations. Despite the market pain, the company continues to launch rockets and operate its satellite network, keeping its long‑term prospects alive while investors reassess the sustainability of its lofty valuation.

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SpaceX IPO Plunge Raises Market Concerns [www.finnewsnetwork.com.au]
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