Shares of Elon Musk's aerospace venture, SpaceX, faced a challenging start to the week, extending losses for a second consecutive trading day. The stock, trading under the ticker SPCX, tumbled further towards its initial public offering (IPO) price of $135, closing Monday at a new all-time low. This recent downturn brings the company's valuation notably below its June 12 debut price of $150, marking a roughly 7% decline since its first public trade.
The latest slide saw SPCX shedding 4.51% on Friday, followed by another 4.24% on Monday, intensifying concerns among investors regarding its market performance. This volatility comes just weeks after SpaceX's high-profile addition to the Nasdaq-100 index, a move that was expected to bring stability through increased passive investment from funds tracking the benchmark.
SpaceX's inclusion in the Nasdaq-100 was facilitated by a recent revision to the exchange's rules, allowing newly public companies to join the index within a month of their market debut. This unprecedented entry was part of a broader anticipation of blockbuster IPOs in the burgeoning artificial intelligence (AI) sector, with companies like OpenAI and Anthropic also rumored to be preparing for public offerings.
While both AI giants have confidentially filed IPO prospectuses with the Securities and Exchange Commission, no official timelines or definitive plans for their market entries have been disclosed. OpenAI CEO Sam Altman recently expressed uncertainty regarding his company's public debut plans for the current year, adding to the speculative environment surrounding these highly anticipated listings.
Adding another layer to SpaceX's eventful week, the U.S. Federal Aviation Administration (FAA) announced the closure of its review into a Starship booster's return failure from a May flight test. The FAA confirmed it "oversaw and accepted the findings and corrective actions" from SpaceX's internal investigation into the mishap. This critical decision greenlights SpaceX to proceed with launch operations for Starship Flight 13, contingent upon meeting all safety and licensing requirements. The launch window for this highly anticipated flight is set to open on Thursday at 6:45 p.m. ET, marking a potential positive catalyst amidst the recent stock performance.
Investors will be closely watching both the market's reaction to the FAA clearance and the outcome of the Starship Flight 13 as SpaceX navigates its early days as a public entity.
One-month stock chart of SPCX (Image source: CNBC)
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