3 stats that explain the crash in SpaceX stock price after historic IPO

Heading into SpaceX's historic IPO, skeptics warned the initial valuation looked too rich and that a larger-than-usual retail allocation might run out of buying power. Shares have traded below the $135 offer price for most of the past two sessions after a multiweek decline, and those critics have felt vindicated.

Recent developments deepened the sell-off: SpaceX aborted a rocket launch last Thursday because of an engine failure, a setback that pushed the stock lower to end the week. Three stats capture the pressure on the stock. About $1 trillion in market value has been erased since the post-IPO closing high—shares peaked on day three at a $2.64 trillion valuation and were worth $1.63 trillion as of Friday's close.

Short-sellers have booked roughly $5 billion in paper gains, with S3 Partners estimating nearly 30% of the float sold short and short interest up nearly fivefold in the past month. And 1.37 billion shares will unlock two full trading days after SpaceX's second-quarter earnings report, due after the close on Aug.

spacex, ipo, stock price, offer price, valuation, market value, short-sellers, short interest, share unlock, engine failure