SpaceX’s share price has fallen below its stock market debut just over a month ago, falling sharply from its post-offering peak.
Elon Musk’s rockets, satellites and artificial intelligence (AI) company fell to $132.62 (£98.24) per share on Wednesday, down from its initial listing of $135 in June.
SpaceX’s initial public offering (IPO) made Musk the world’s first trillionaire. The share price is now down 41% from its daily high.
If the price holds or falls further, it will mean that those who purchased the shares around the time of the offering will lose money on their investment.
Even with a tumultuous few weeks for tech stocks, SpaceX took a particular hit.
Compared with a 0.2% fall in the broader Nasdaq index, where SpaceX shares are listed, the company’s share price fell more than 2% on Wednesday.
SpaceX shares have been volatile since they began trading on the public stock market just over a month ago.
After an initial investor frenzy that saw the company valued higher than Amazon and Microsoft, its share price has tanked.
Investors initially viewed SpaceX as their first chance to invest in an artificial intelligence company, according to what analysts and financial market experts recently told the BBC:
Earlier this year, SpaceX acquired Musk’s artificial intelligence startup xAI, recently renamed SpaceXAI, marking his first foray into an AI-focused business.
XAI is best known for its controversial chatbot Grok, but thanks to this acquisition, SpaceX is now leasing data center capacity to other tech companies.
The company’s main business is the production and launch of Starlink rockets and telecommunications satellites.
When Starlink said it was cutting prices in Memphis, Tennessee, amid local concerns about its massive data center project, SpaceX shares fell 8%.
Steve Sosnick, chief market analyst at Interactive Brokers, told Reuters: “There hasn’t been anything recently to remind people of some of the catalysts for why they bought SpaceX.”
SpaceX is expected to release its first public earnings report in August.
Sosnick added: “The fact that the stock fell a couple of dollars below the IPO price is not a tragedy in itself, but SpaceX is closely watched and plays an important role in the minds of investors.”
SpaceX did not immediately respond to a request for comment.