SpaceX shares extend losses after $400B sell-off

SpaceX shares fell more than 4% in premarket trading Tuesday, extending sharp losses after the company shed about $400 billion in market value in the previous session as investor enthusiasm following its record initial public offering (IPO) continued to fade.

Shares of the space and artificial intelligence company were down 1% as of 1125GMT, after closing 16.43% lower at $154.60 on Monday.

The latest decline followed a series of losses, with the stock dropping 3.6% and 5% in the previous two trading sessions before Monday’s steep fall.

SpaceX’s market capitalization stood at $2 trillion at Monday’s close, after briefly surpassing Amazon and Microsoft in value during a post-listing rally.

The company went public on June 12 in a record-breaking IPO, with its shares initially surging more than 50% above the offering price as investors sought exposure to Elon Musk’s space and AI ambitions.

However, the rally has since lost momentum, leaving many investors who bought shares after the debut with most of their gains erased by the end of last week.

The company announced Monday a senior unsecured notes offering and disclosed that it had $100.8 billion in cash and cash equivalents as of June 19.

SpaceX also said it signed a major computing power agreement with open-source AI startup Reflection, giving the company access to Musk’s Colossus infrastructure.