SpaceX shares drop to record low after Nasdaq-100 entry

Shares of SpaceX fell sharply on Wednesday, hitting a record low of just over $145, a day after the company joined the Nasdaq-100 index. The stock's decline, which extended a slide of more than 13 percent over the previous five days, came despite expectations that inclusion in the prominent index would drive significant passive investment.

The stock debuted on the Nasdaq on June 12 at $150 per share and was added to the Nasdaq-100 on Tuesday, July 7, following a recent rule change that allows major companies to join after just 15 trading days. This made SpaceX one of the fastest additions to the index in history. The move automatically placed the stock into many index funds and exchange-traded funds, including portions of millions of American retirement accounts. However, shares fell 5.4 percent on Tuesday and continued to drop on Wednesday, briefly trading below the initial public offering price.

The weak performance highlights persistent investor concerns over the company's lack of profitability despite a valuation near $2 trillion. SpaceX reported a loss of nearly $5 billion last year on revenue exceeding $18.5 billion. Its recent merger with Elon Musk's artificial...