Elon Musk’s SpaceX shares tumble 23% in three sessions as post-IPO euphoria fades; over $600 bn wiped out
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Shares of Elon Musk-led SpaceX have witnessed sharp profit booking after an extraordinary market debut earlier this month, with the stock falling for the third consecutive session on Monday and wiping out more than $600 billion in market value over the past three trading days.
SpaceX shares plunged 16.43% to close at $154.60 on Monday, slipped to their lowest closing level since the company made its stock market debut on June 12. The stock has now declined nearly 23% over the last three sessions as investors booked profits following a blistering rally after the listing.
Despite the recent correction, SpaceX continues to command a market valuation of slightly above $2 trillion, retaining its position among the world's most valuable companies.
The company had raised a record $75 billion through its initial public offering (IPO), making it the largest public issue globally and surpassing the previous record set by Saudi Aramco in 2019. The offering valued SpaceX at approximately $1.77 trillion before trading began, marking the highest valuation ever achieved by a newly listed company.
Investor appetite remained exceptionally strong during the debut session. The shares, priced at $135, surged nearly 19% on listing day to close at $160.95, taking the company's market capitalisation beyond $2.1 trillion. With this, SpaceX became the fastest company in history to cross the $2 trillion valuation mark.
The momentum continued in the days following the listing, with the stock climbing more than 60% above its IPO price and touching levels around $225. At its peak, SpaceX's market value rose to nearly $2.8 trillion, enabling the company to overtake Amazon and briefly surpass Microsoft to become one of the five most valuable companies globally.
The spectacular listing also propelled Elon Musk's personal wealth beyond the $1 trillion mark, making him the first individual to attain trillionaire status.
Adding to the frenzy, SpaceX set a new benchmark in the derivatives market. According to Reuters, investors traded approximately 1.8 million SpaceX options contracts on the first day options became available, making it the busiest options debut ever for a newly listed company. The previous record of about 364,000 contracts was set by Meta Platforms following its 2012 listing.
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