SpaceX trades 20% below IPO price, $1.2 trillion in market cap erased

SpaceX shares erased 20% of their value since the record setting debut of Elon Musk's rocket, satellite and AI company, as investors shunned riskier technology firms.

The stock slumped 5% to $107.80 during trade on Monday, extending a sharp downturn from a peak hit days after its debut last month. The company has now shed more than $1.2 trillion in market value from the June 16 peak in one of the largest market capitalization wipeouts in history.

Also Read: $600 billion wiped out in a month, cracks exposed in SK Hynix chips


A volatile geopolitical backdrop paired with concerns surrounding the spending powering inflated demand and valuations across the AI ecosystem has hammered many of the industry's largest companies in recent weeks. SpaceX investors are also weighing the potential impact of releases from the unusual staggered lock-up arrangement over the coming months with as many as 911.5 million shares available for trading on August 6.