Investing.com -- SpaceX shares dropped below their initial public offering price for the first time on Wednesday as the post-debut rally continued to fade.

The stock fell 2.2% to $133.02 at 12:35 ET, moving beneath the $135 offer price from last month's $86 billion IPO. The decline adds to a volatile trading period that saw shares jump nearly 50% in the first three trading days before giving back most of those gains in recent weeks.

Selling pressure may increase as the first lockup restrictions on insider and early-investor share sales are set to expire after the company reports its first quarterly results as a public company in the coming weeks.

SpaceX has remained under pressure since disclosing a $4.9 billion net loss for the previous year, a result that raised concerns among investors about the company's path to profitability. The stock has also been weighed down by broader market headwinds, including uncertainty over the Federal Reserve's interest-rate trajectory and growing questions about the durability of the rally in artificial intelligence-linked stocks, particularly semiconductor companies.

The stock's initial strength was partly driven by demand from passive investment funds after SpaceX gained rapid inclusion in major equity benchmarks. The Elon Musk-led company joined the Russell 1000 Index weeks after its listing and was later added to the Nasdaq 100 after a rule change that sped up eligibility for newly public large-cap companies.

Despite the recent slump in the stock Wall Street has remained bullish on the stock. Raymond James recently set a price target of $800 per share, one of the most bullish forecasts on the stock.