SpaceX shares dip below IPO price ahead of Starship test
The spaceflight manufacturer’s shares have slipped below their initial public offering price for the first time, continuing a steady decline from post-IPO highs that briefly valued the company at over $200 per share.
SpaceX shares traded below their $135 initial public offering price on Wednesday afternoon, dipping beneath $133 before recovering to hover around the IPO threshold. The decline marks the first time the stock has breached this level since its debut on 11 June 2026, ending a period where shares consistently traded above the offering price. This movement follows a steady erosion of value over the past month, with shares losing ground every week since reaching post-IPO highs of over $200.
The initial public offering, priced at $135 per share, raised approximately $75 billion to $86 billion, valuing the company at around $1.77 trillion and briefly making CEO Elon Musk the world’s first trillionaire on paper. On its debut day, the stock rose 27% to $172, coinciding with modest gains in US equity markets and a drop in oil prices linked to reports of an interim peace deal between the United States and Iran regarding the Strait of Hormuz.
Market volatility has been exacerbated by a small share float, with only 4% of total shares available for trading on the Nasdaq. This limited liquidity, combined with intense scrutiny of the company, has contributed to significant price swings. The downturn also reflects a broader deflation in tech stock values over the last month and investor caution regarding Musk’s long-term vision for the organisation. Additionally, bonds issued by SpaceX in the wake of the IPO are experiencing losses.
The price movement precedes the first Starship test launch since the company went public, scheduled for Thursday. The vehicle is expected to explode during the trial, as the company does not plan to recover the booster or upper stage. Instead, both components will simulate a landing in the Gulf of Mexico, resulting in an explosion regardless of flight success. This follows a booster failure in May and underscores the developmental nature of the Starship programme.
SpaceX’s market performance is closely watched as a barometer for the broader technology sector and upcoming listings. Competitors Anthropic and OpenAI have filed confidentially for initial public offerings, with their potential success likely to be gauged by the trajectory of SpaceX’s stock. The company recently joined the Nasdaq-100 index, a milestone that coincided with the recent decline in share price.
