SpaceX loses $600 billion in three days as it issues first-ever bonds
SpaceX shares dropped 16% on Monday, erasing over $600 billion in market value in three days. The company also launched its first bond offering of about $20 billion to repay a bridge loan from its merger with xAI.
SpaceX shares closed at $154.63 on Monday, down approximately 16% from the previous session. The decline comes after a three-day rout that wiped out more than $600 billion (€524.2bn) in market capitalization. The company's valuation now sits just above $2 trillion (€1.74tn), making it the seventh most valuable company globally, behind Taiwan Semiconductor Manufacturing Company (TSMC).
The stock opened for public trading at around $150 on June 12 and surged to nearly $226 by June 16—a gain of about two-thirds—before retreating. Currently, trading more than 30% below that intraday high and only about 3% above the IPO price. Analysts say the rally was built on a thin float of freely traded shares and lofty expectations for its artificial intelligence ambitions, leaving it vulnerable to a sharp reversal once sentiment shifted.
First foray into debt markets
Monday's leg down coincided with SpaceX's entry into the corporate bond market. The company announced an inaugural offering of senior unsecured notes, with people familiar with the plans putting the target at around $20 billion (€17.4bn). Proceeds are primarily intended to repay a bridge loan taken on during its merger with Elon Musk's AI venture xAI earlier this year, with the remainder going to general corporate purposes.
The bond sale follows investment-grade credit ratings assigned last Friday by the three major agencies: Moody's (Baa1), Fitch (BBB+), and S&P Global (BBB). These ratings allow SpaceX to borrow more cheaply and access a broader pool of institutional lenders. In documents tied to the offering, SpaceX also disclosed a cash position of roughly $100.8 billion (€88bn) as of June 19, much of it raised in the IPO, alongside $29.1 billion (€25.4bn) of long-term debt.
The combination of vast cash reserves and fresh borrowing so soon after a record flotation has unsettled some investors, who see the rapid fundraising as a sign of heavy spending ahead as SpaceX scales its AI and data center plans. However, opting for debt rather than new equity spares existing shareholders further dilution, preserving their stake while funding expansion.
