NEW DELHI: SpaceX shares fell below their initial public offering (IPO) price for the first time on Wednesday, marking a sharp reversal for the Elon Musk-led company after its blockbuster market debut just over a month ago.The stock declined 1.9 per cent to $133.50, slipping below its $135 IPO price and extending losses from its record high of $225.64, which had briefly pushed the company’s market capitalisation above $2 trillion.The decline leaves investors who bought shares at the IPO price facing paper losses for the first time, highlighting fading investor enthusiasm after the initial listing frenzy.SpaceX had raised around $85.7 billion in its IPO, the largest on record, and ended its first day of trading with a valuation of about $2.1 trillion, making Musk the world’s first trillionaire.Analysts said the decline reflects a broader shift in market sentiment rather than a company-specific event. Wall Street has come under pressure in recent weeks amid uncertainty over the US Federal Reserve’s interest rate path and concerns that the rally driven by artificial intelligence-related stocks may be losing momentum.“There hasn’t been anything lately to remind people of some of the catalysts for why they bought SpaceX,” Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters.Market watchers also noted that some investors had questioned whether SpaceX’s valuation had become stretched, given the company’s $4.9 billion loss last year and the fact that several of its long-term projects are yet to generate returns.Despite its inclusion in the Nasdaq 100, the stock has continued to weaken and is down nearly 13 per cent since joining the index.Investor attention is now turning to SpaceX’s first quarterly earnings report as a listed company, which the firm has said it will publish through its website and social media platform X (also owned by Musk). Markets are also watching the upcoming expiry of part of the IPO lock-up period, which will allow eligible employees and early investors to sell shares, potentially adding to selling pressure.Analysts are also closely tracking the company’s 13th Starship test flight, seen as a crucial milestone for reducing launch costs and advancing projects such as lunar missions and orbital data centres.
