SpaceX shares have slipped below their initial public offering closing price, wiping out approximately $400 billion in market capitalization.
The decline marks a significant reversal for the aerospace giant, which had entered public markets with high expectations and substantial investor enthusiasm.
The sell-off comes as reports indicate the company requires an immediate round of fresh capital.
This liquidity need complicates the narrative ahead of SpaceX's highly anticipated Nasdaq debut scheduled for this Friday.
Investors are increasingly scrutinizing the capital intensity of Musk's ventures, with the stock's performance serving as a direct test of confidence in his management style and financial planning.
The pressure on the stock reflects broader market caution regarding high-growth, capital-intensive tech assets.