Shares of SpaceX fell more than 3 percent in premarket trading Tuesday, extending a sharp selloff that has erased about US$400 billion from the company’s market value as investor enthusiasm following its blockbuster initial public offering faded.
The decline followed a 16 percent plunge on Monday, after the stock had already dropped 3.6 percent and 5 percent in the previous two trading sessions.
SpaceX’s market capitalisation stood at around US$2 trillion at Monday’s close, after briefly overtaking major companies including Amazon and Microsoft following its record-breaking IPO on June 12.
Shares surged more than 50 percent above the offering price shortly after the debut as investors rushed to back the company’s ambitions in space technology and artificial intelligence.
However, the rally quickly lost momentum, with the average investor who bought shares at launch seeing most of the early gains disappear by the end of last week.
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The latest decline came after SpaceX announced a senior unsecured notes offering and disclosed that it held US$100.8 billion in cash and cash equivalents as of June 19.
The company also revealed a major computing power agreement with open-source artificial intelligence startup Reflection AI, giving the firm access to Colossus AI infrastructure.
Investors have been reassessing SpaceX’s valuation after the initial IPO excitement, with market participants weighing the company’s long-term growth prospects against concerns over its elevated price following the dramatic post-listing surge.
The stock was down 3.43 percent in early premarket trading Tuesday.
