SpaceX shares tumbled 16.4% on Monday, marking the third straight session of sharp declines for Elon Musk’s aerospace and artificial intelligence company.

The sell-off pushed the stock below its initial public offering closing price, wiping out gains for early investors and signaling a severe loss of momentum in one of Wall Street’s most closely watched growth names.

The drop in SpaceX was the anchor of a broader retreat in US equities, which pulled back from near-record levels.

Investors executed a sharp rotation out of technology stocks, favoring defensive sectors as risk appetite cooled.

The divergence in performance highlighted growing caution toward high-valuation growth assets, with SpaceX bearing the brunt of the selling pressure.

This development follows a period of intense volatility for the company, which has seen its market valuation fluctuate wildly since its public debut.