SpaceX Rebounds Sharply a Day After Plunge; Intraday Price Briefly Fell Below First Trading Price

[Financial News]  

Elon Musk's rocket and space AI company SpaceX rebounded on the 23rd local time.
The stock, which had plunged nearly 24% after three straight sessions of sharp losses since the 17th, managed to recover.
At the start of trading, SpaceX slipped to as low as $147.11, briefly falling below the $150 first-trading price set on the 12th. That temporarily pushed its market capitalization back below the $200 billion mark. Falling below the first-trading price means that all investors who did not receive shares in the offering were sitting on paper losses.
It soon turned higher, however, surging as much as $10.90, or 7.05%, from the previous session to $165.50.
Still, the gains narrowed as the company lost momentum, and it ultimately settled for a close of $156.11, up $1.51, or 0.98%.
SpaceX had already fallen 3.6% on the 17th, then 5% on the 18th, and more than 16% on the 22nd.
Investor sentiment was dampened by its plan, announced on the 22nd, to issue senior unsecured corporate bonds. Although SpaceX said as of the 19th it held $100.8 billion in cash and cash equivalents, the bond sale announcement triggered a wave of selling.
There was some good news as well.
On the 22nd, the same day it disclosed the bond issuance plan, SpaceX said it had signed a deal to provide computing power to open-source AI startup Reflection. Through SpaceX's Colossus infrastructure, Reflection will gain access to the computing capacity it needs.
Meanwhile, the day's low of $147.11 was still about 9% above the offering price of $135.

dympna@fnnews.com Song Kyung-jae Reporter