SpaceX shares have dropped over 40% from their post-IPO peak since the company went public in June.
At least five financial institutions, including Morgan Stanley and Marex Group, have applied to launch structured products offering up to 50% downside protection on SpaceX shares, according to reports.
Marex Group's structured product has a 9-month term and offers a minimum monthly interest of 1.8% regardless of share performance. The product also provides principal protection for up to a 35% decline in SpaceX shares; any decline beyond that is fully borne by the investor.