SpaceX shares closed at $135.27 on Wednesday, just above the $135 IPO price set by CEO Elon Musk for the company's June 12 public offering that raised nearly $86 billion. The stock spent much of the day below that level, dipping under $133 at one point, before recovering. The decline marks a steady fall from the initial post-IPO surge that briefly pushed the stock above $200, giving SpaceX a valuation rivaling tech giants like Amazon and Microsoft.
Volatility from a tiny float
Only about 4% of SpaceX's total shares trade on the Nasdaq, creating what analysts call a small "float." That limited supply, combined with intense public attention on the company, has produced wild price swings since the IPO. The broader tech stock selloff over the past month has also weighed on SpaceX's shares, and bonds the company sold after going public are also under pressure.
Starship test looms
SpaceX faces a key test on Thursday with the first Starship launch since the IPO. The rocket remains in development and prone to failures under the company's "fly, fail, fix" philosophy. This flight follows a booster failure in May, and SpaceX again plans to let both the booster and upper stage simulate a landing in the Gulf of Mexico, meaning they will be destroyed regardless of mission success.
Wider market implications
SpaceX's stock performance is closely watched as a barometer for investor confidence in Musk's ambitious promises. A prolonged downturn could affect other Big Tech companies eyeing public markets, including Anthropic and OpenAI, both of which have filed confidentially for IPOs. Their eventual valuations may hinge on how SpaceX's shares trade in the coming months.