SpaceX stock price drops again as post-IPO gains for retail investors get nearly wiped out

On Monday, the stock price for Elon Musk’s space and AI company crashed by more than 16%. That decline followed drops of around 3.6% and 5% last Wednesday and Thursday, respectively. (Markets were closed on Friday for the Juneteenth holiday.) And in premarket trading this morning, the company’s shares fell below a threshold that no investor wants to see. Here’s what you need to know. SpaceX shares dip below their opening price In premarket trading on Tuesday, SpaceX shares dipped 4%, putting the company’s share price at just above $148.16. Not only is that over $75 lower than its all-time high share price of $225.64 just one week ago, but it also means that retail investors who got in on the ground floor of SPCX on its first day of trading could lose money on their investment (on paper, at least). To recap: Before its debut on the Nasdaq exchange earlier this month, SpaceX priced its shares at $135 each for its initial public offering. This is the price at which institutional investors and other insiders were able to buy the shares before they began trading in the public markets. SpaceX also reportedly allocated 20% of its IPO shares to retail investors, a high percentage though apparently not enough to meet demand. By selling its shares for $135 apiece, SpaceX raised $75 billion in its IPO—the most money ever raised in an initial public offering. But retail investors who needed to wait until the stock opened on June 12—its first day of trading on public markets—weren’t able to snap up SPCX shares for $135 each. By the time SPCX shares actually hit the market, pent-up demand had pushed the share price to $150. This price, known as the opening price, is the lowest price that many investors ever paid for SPCX shares. The stock rose even higher as the trading day proceeded. But in premarket trading this morning, shares dipped belo