SpaceX shares ended higher on Tuesday, snapping a three-day selloff that wiped out more than $600 billion from the Elon Musk-led rocket and satellite company’s market value.
The stock gained 1% to close at $156.11 after a choppy session that saw shares slip as much as 4.8%, then jump 7.1% before paring much of that advance by market close. The volatility came amid a broad-based slide in technology and other high-momentum stocks after a selloff in Korean chipmakers stoked fears about the rally in companies involved in artificial intelligence.
Still, the rebound helped reverse some of Monday’s 16% plunge that erased $400 billion in market value, marking the second-largest one-day loss on record. Only Nvidia Corp.’s roughly $590 billion plunge last year is bigger. SpaceX’s market capitalization was about $2 trillion at Tuesday’s close.
The stock moves are following a typical IPO pattern where “everybody was enjoying the hype and the mania,” said Louis Navellier of Navellier & Associates, adding that pressure on shares will build as lockups that keep insiders from selling expire and the company reports earnings figures. “It’s just a lesson that you have to follow fundamentals.”
