SpaceX shares are trading lower in premarket activity on Tuesday, extending a sharp downturn that has erased billions from the company’s valuation since its record-breaking initial public offering.
The stock is down more than 3% before the open, following a brutal session on Monday that saw the aerospace and artificial intelligence giant tumble 16.4% to close.
The Monday sell-off wiped approximately $400 billion from SpaceX’s market capitalization, marking the third consecutive day of significant declines for Elon Musk’s company.
The Monday sell-off wiped approximately $400 billion from SpaceX’s market capitalization, marking the third consecutive day of significant declines for Elon Musk’s company.
The sharp drop pushed the stock below its IPO price, signaling a rapid reversal of the initial enthusiasm that greeted the company’s debut on public markets.
The continued weakness highlights the volatility facing high-growth tech names as investors reassess valuations after the initial IPO surge.
With the stock now trading below its offering price, early investors are facing substantial paper losses, and the broader market sentiment toward the company has shifted from euphoria to caution.