SpaceX shares have declined below their initial public offering price of $135 per share, closing at $131.11 during Thursday trading. The drop marks a significant retreat from the company's peak market value of over $2.6 trillion in the first three days after its mid-June listing, which was the largest debut in stock market history.
The share price decline has affected major investors worldwide. Australian billionaire Gina Rinehart's company, Hancock Prospecting, purchased over $1 billion worth of SpaceX shares at the IPO. Based on the stock's peak value, Rinehart has experienced a paper loss of approximately $500 million, with an additional $30 million in losses following Thursday's close.
Elon Musk's personal net worth has fallen to $838 billion as of Thursday, according to Forbes. This represents a significant decline from when Musk briefly became the world's first trillionaire following the IPO announcement.
Short sellers have benefited substantially from the stock's decline. Bloomberg reported that investors betting against SpaceX have recorded profits of $3.88 billion as shares have fallen in seven of the last eight trading sessions. The company experienced its largest single-day drop on June 22 when it announced plans to issue billions in additional debt through bonds.
Despite the losses, major investors appear to be holding their positions for the long term. Hancock Prospecting has not indicated whether it has sold any of its stake. A spokesperson for the company declined to comment on whether it has bought or sold additional shares since the listing, though it has republished articles about its initial investment on its website.
Market analysts suggest that long-term investors view the decline as a temporary pullback in what they consider a growth opportunity. Tony Sycamore, a market analyst at IG Australia, noted that investors backing SpaceX were typically looking at a decade-long investment horizon rather than short-term gains.
The IPO generated unprecedented retail interest in Australia. CommSec, the country's largest retail share broker, received applications from 28,000 Australians seeking to purchase SpaceX shares, setting a record for applications. The company received three times more applications globally than it could accommodate. While CommSec declined to disclose exactly how many Australian applicants successfully purchased shares, the level of interest exceeded previous IPO records by a significant margin.
Market analysts attributed the recent stock decline to easing investor euphoria rather than fundamental company concerns. Some retail investors who participated in early trading likely sold at the peak to lock in profits, while others appear committed to holding their shares through the company's long-term development.