Musk made deals worth lakhs of crores after SpaceX listing:Company’s shares fell 35% from all-time-high

Remember that evening of 12 June, when Elon Musk’s SpaceX made its debut at the stock market for the first time. The company had set the share price at $135 or nearly ₹13,000. But as soon as the market opened, the price reached $150 or ₹14,400. During the day it climbed to $176 or ₹16,896 and finally closed at $160.95 or ₹15,451.2. This had become the biggest IPO in history. The following week was even more remarkable – the share reached $225. With this, SpaceX had surpassed even Amazon and Microsoft in terms of market cap. In a BBC World report, Keith Snyder, an analyst at investment research company CFRA, said, ‘Whatever company Musk touches, people get excited. But this was the first time people felt they were investing in something that was being presented as an AI project.’ Actually, this year SpaceX had acquired Musk’s own AI company xAI, which has now been renamed SpaceX AI and is known for the chatbot Grok. But as the reality came to light, the picture started changing. SpaceX’s real earnings come from building rockets, launching them, and the Starlink satellite service. As soon as Starlink announced price cuts amid local opposition regarding a data center in the Memphis area of America, the stock fell by 8% that day. On July 7, when SpaceX was included in the Nasdaq-100 Index, the entire index fell by 1.7%, but SpaceX’s stock dropped by 4.4%. By the end of the first month, the share price remained around $145. That is, 18% below the highest level of the first day and 35% below the all-time high. This means retail investors who bought shares in the first five days of listing are now sitting on heavy losses. Snyder even goes so far as to say that it started behaving like ‘meme stocks’ such as GameStop and Wendy’s, where prices jump solely due to online enthusiasm. This is also true to some extent. Last year, SpaceX earned $18 billion (₹1.7 lakh crore), and it is still running at a loss. Bought a $5.7 Lakh Crore Coding Company Without Paying Cash On June 16, when SpaceX’s share was on an upswing, on that very day the company acquired Cursor, an AI bot startup that writes code, for $60 billion (₹5.7 lakh crore) by paying in SpaceX shares. Since SpaceX’s share price was sky-high at that time, Musk essentially acquired this company without spending any actual cash. Analyst Samuel Kar calls this a market understanding that perhaps no other company possesses.