SpaceX stock falls to a record low after its June 12 debut, reflecting broader post-IPO volatility and looming insider sales.
SpaceX (SPCX) shares have declined 31% from their first-day closing price of $160.95, reaching a record low. The drop highlights risks for retail investors entering hyped IPOs, which often serve as exit opportunities for early backers.
Historical data shows post-IPO performance is typically weak. Over the past 15 years, only five companies—Palantir (PLTR), Airbnb (ABNB), Arm Holdings (ARM), Snowflake (SNOW), and Maplebear (CART)—posted positive returns one year after listing. SpaceX debuted on Nasdaq on June 12, opening at $150 before closing at $160.95.
Pressure on the stock stems from uncertainty over a potential Tesla (TSLA) merger and upcoming lockup expirations. Insiders, employees, and early investors will gain the ability to sell 911.5 million shares in the coming months, raising concerns about near-term supply.