SpaceX Plunges to $147 from $225 After Options Trading Spurs Shorting
STRC•SpaceX shares surged to $225 on debut then plunged to $147 after options trading began on June 16, enabling short sellers to drive a pump-and-dump cycle. Less than two weeks post-IPO, SpaceX raised $25 billion in debt, sparking investor concerns over its rapid cash need.
1. IPO Price Spike and Low Float
Shares surged to around $225 in the first four days post-IPO as early investors remained locked, creating a zero-supply environment that forced all retail buyers to bid up prices.
2. Options Launch and Subsequent Selloff
Options trading began on June 16, unlocking short positions and triggering a rapid selloff that drove shares down to approximately $147 by June 23 as short sellers capitalized on retail interest.
3. $25 Billion Debt Sale Raises Concerns
Less than two weeks after going public, SpaceX sold $25 billion in debt—nearly four times the amount sought—prompting worries that the company rushed to raise cash and contributing to downward pressure on its equity.
