SpaceX, Elon Musk’s company, has suffered significant losses, shedding more than $600 billion in market capitalisation over three days. Shares fell by 16% on Monday, hitting their lowest level since the IPO.
- SpaceX shares fell by 16%, dropping to $154.60.
- The company lost more than $600 billion in market capitalisation in three days.
- SpaceX plans to issue bonds worth $20 billion to fund its AI programme.
- Retail investors are continuing to buy SpaceX shares, but in smaller volumes.
- SpaceX remains the sixth-largest company in the world.
Why are SpaceX’s shares falling?
Shares in SpaceX, the company headed by Elon Musk, suffered significant losses, falling by 16% on Monday and closing at $154.60. This was the lowest level since IPO, which was valued at a record $75 billion. Over the course of three days, the company’s shares fell by 23%, leading to a decline in market capitalisation of more than $600 billion.
Market capitalisation SpaceX currently stands at just over $2 trillion.
“Sellers are back in control. Anyone who wanted to buy shares has already done so,” said Michael O’Rourke, chief market strategist at JonesTrading.
The fall in share prices came against the backdrop of the announcement of the first issue of investment-grade bonds, which forms part of the company’s plan to raise $20 billion to fund its ambitions in the field of artificial intelligence. SpaceX It has also signed a multi-billion deal with Reflection AI to provide computing resources.
Despite the losses, SpaceX remains the sixth-largest company in the world, and its share price is still 15% higher than its IPO price. Retail investors continue to actively buy SpaceX shares, although trading volumes have fallen compared with the previous week.
Analyses show that SpaceX has significant potential for growth, but most of its long-term value is already reflected in its share price.
“The company has significant potential for growth, although we believe this is already reflected in its current valuation,” the analyst emphasised Michael Leshok.
