SpaceX shares suffered a severe sell-off in early trading, plunging 23% and erasing approximately $600 billion from the company’s market capitalization.
The move represents the steepest single-day decline for the aerospace giant since it went public, signaling a abrupt end to the speculative fervor that had driven the stock higher in recent weeks.
The sharp repricing followed the company’s announcement that it would issue bonds for the first time.
While the debt offering itself was a routine capital-raising step, the market’s reaction suggests investors are reassessing the valuation premium attached to the stock.
The selloff marks the third consecutive day of losses, pushing the stock to its lowest level since its first day of trading.
MarketWatch reports that everyday investors fueled the initial trading frenzy, but the current downturn exposes the fragility of that momentum.