SpaceX shares broke their $135 IPO price during trading on the Nasdaq last week, falling to $134.50, down about 1.2%. This move wiped out the entire listing premium and erased about $1.2 trillion of the market value the stock had added at its peak, according to the Financial Analysis Unit at Al-Eqtisadiah, which relied on Bloomberg data.

The next test will not be just the stock's ability to bounce back, but its ability to build a stable price base supported by long-term investors, instead of relying on high share turnover and short-term momentum.

From now on, the market will be more sensitive to four factors: Starship's progress, Starlink's cash flow growth, the extent to which AI drains capital, and management's ability to translate expansion into economic returns exceeding the cost of capital.

Elon Musk lost $432 billion

. Elon Musk was not immune to the collapse of the listing premium. After the market value of his stake soared to nearly $1.08 trillion at the stock's peak of $225.61, it plummeted to approximately $643.5 billion as the stock returned to its IPO price of $135.

This wiped out roughly $431.9 billion of the value of his paper holdings, a loss equivalent to nearly 40% of its peak. Musk did not lose this amount in cash, as he has not sold his shares, which he cannot currently do due to a lock-up period. However, this movement reveals that the biggest beneficiary of SpaceX's rise was also the biggest loser from its fall back to square one.

From $1.77 to $2.97 trillion... then the gains evaporated.

SpaceX's IPO valuation was approximately $1.765 trillion, before surging to $2.11 trillion by closing its first trading session at $160.95, adding $339 billion, or 19%.

At its highest close of $201.80, the market capitalization climbed to $2.64 trillion, $873 billion above the IPO valuation, fueled by expectations of Starlink expansion, the success of Starship, and the growth of artificial intelligence.

At its intraday peak of $225.61, the company's value approached $2.97 trillion, $1.19 trillion above the IPO price. However, the stock's return to $135 erased all of this gain.

From its intraday high of $225.61 to the IPO price, the stock has lost approximately 40%, and about 16% compared to its first-day closing price.

But the magnitude of the decline alone doesn't explain the nature of the movement. The price trajectory unfolded in three phases

during the initial sessions. The market wasn't merely assessing current earnings; it was paying a premium for access to a rare asset long associated with private markets, bearing the name of Elon Musk and a growth story difficult to directly replicate in the public market.

The second phase: Share allocation.

After the stock reached its peak, high trading volumes began to coincide with a price decline, signaling the transfer of shares from early subscribers or buyers to new investors who entered at higher valuations.

The third phase: Retesting the IPO price.

With dwindling new demand and continued selling pressure, the stock gradually returned to $135. Here, the IPO price transformed from a historical benchmark into a direct test of the market's willingness to defend the original valuation.

High turnover and liquidity exceeding half a trillion dollars:

Since its listing, SpaceX has seen trading volume exceed 3.05 billion shares, equivalent to 4.78 times the free float of 638.9 million shares, with a trading value of approximately $515 billion, including $83 billion in the first session.