SpaceX shares have experienced a significant downturn following a record-breaking IPO on June 12. After an initial surge that saw the stock reach $225.64 on June 16, the rally cooled. The stock closed last week around $185, down roughly 18 per cent from its peak.
A three-day selloff subsequently wiped out more than $600 billion from the market value of the Elon Musk-led rocket and satellite company. Shares slid as much as 4.6% in premarket trading on Monday and closed at $154.60, a 16% decline. On Tuesday, the stock briefly fell below $150, the price at which it began trading when the company listed publicly just over a week ago.
The losses came after the company announced it is selling investment-grade bonds for the first time. Adding to the volatility, an estimate by S3 Partners indicates that about 40 million shares, representing roughly 5% to 7% of those publicly available to trade, are sold short.
Despite tech market turbulence, SpaceX shares ended Tuesday higher, recovering 2.4% and snapping the three-day selloff. The company's market capitalization now sits just above $2 trillion.