SpaceX falls 20% below IPO price, erasing US$1.2 trillion value

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeInvestorSpaceX falls 20% below IPO price, erasing US$1.2 trillion valueThe preparation for SpaceX shares hitting the market has drawn many to debate how far the stock could fallAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.SpaceX’s lofty valuation and preparations for a wave of potential selling pressure has drawn a swarm of short-selling investors over the past month. Photo by Patrick T. FALLON/AFP via Getty ImagesSpaceX shares erased one-fifth of their value since the record setting debut of Elon Musk’s rocket, satellite and artificial intelligence company, as investors shunned riskier technology firms.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe stock slumped five per cent to US$107.80 at 9:36 a.m. in New York, extending a sharp downturn from a peak hit days after its debut last month. The company has now shed more than US$1.2 trillion in market value from the June 16 peak in one of the largest market capitalization wipeouts in history.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.Canada's best source for investing news, analysis and insight.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Investor will soon be in your inbox.We encountered an issue signing you up. Please try againSpaceX’s lofty valuation and preparations for a wave of potential selling pressure has drawn a swarm of short-selling investors over the past month. Roughly 30 per cent of the shares currently available for trading are being sold short, data compiled by S3 Partners show. That skepticism has paid off to the tune of nearly US$8 billion in paper profits, the data show, as the stock sits 47 per cent below a June 16 closing high.The selloff is accelerating despite SpaceX executing a largely successful test of its Starship rocket on Friday, deploying upgraded satellites for its Starlink communications network and returning to Earth largely unscathed. Starship is central to Musk’s ambitions to expand SpaceX’s Starlink network, send humans to the moon and beyond and put data centres in space. But it has faced an unstable development path marred by explosive setbacks, malfunctions and delays.The preparation for SpaceX shares hitting the market has drawn investors and analysts to debate how far the stock could fall. Bearish investors have circled the US$100 per share level, with Morgan Stanley analyst Adam Jonas writing in a note on Friday that such a slump would mean zero or even negative value for SpaceX’s AI segment.The initial unlock of shares in the coming weeks will be accelerated before many get a chance to exit through early December. By the end of the year the number of shares available to trade will soar to 5.33 billion, up from around 639 million shares now, according to the initial public offering prospectus for Space Exploration Technologies Corp., as it is formally known.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.