SpaceX's slide below IPO price risks turning blockbuster IPO into confidence test

NEW YORK — SpaceX's slip below its initial public offering price risks turning a marquee stock-market debut into a confidence test, potentially unsettling retail investors and complicating decisions for other companies weighing high-profile listings.

Elon Musk's company, spanning rockets to AI, debuted on June 12 and soared in the ensuing days, at one point valuing the company at well above $2 trillion.

Since its debut, trading has been rocky.

The stock slipped below its $150 opening price in late June with concerns about lofty tech stock valuations weighing on global indexes.

The stock slid below its $135 IPO price for the first time on Wednesday, touching an intraday low of $132.15 before recovering to trade down 0.6 percent at $135.27 — just over a month after the record-breaking IPO made Musk the world's first trillionaire.

SpaceX shares started trading as part of the Nasdaq 100 index about a week ago.

A break below the IPO price is a psychological blow for SpaceX shares, said Matthew Maley, chief market strategist at Miller Tabak.

"It raises the narrative that the stock is up on ...