Following a record-breaking IPO, shares of Elon Musk’s space company SpaceX—which debuted at $135 per share—rose to a peak of $225, but then began to decline, falling by more than half to less than $111 as of now.
As CNBC notes, SpaceX’s market capitalization—which at one point placed it among the world’s four most valuable companies—has shrunk by more than $1.2 trillion. Musk himself ironically referred to himself as a “former trillionaire.”
“Small speculators continue to buy call options with an extremely low probability of being exercised, which require the rapidly falling stock to quickly reverse course and double in price,” the authors of the publication comment on what is happening in the market with the company’s stock. “SpaceX provides traders with some of the most volatile price swings on the market,” they add.
