SpaceX stock plunges 14% as it seeks to raise debt | Latest Tech News
SpaceX shares tumbled 16% Monday – their third straight day of declines — on news that Elon Musk’s rocket company may launch a huge borrowing binge.
After a blockbuster initial public offering earlier this month, SpaceX on Monday revealed in a regulatory submitting that it plans to promote investment-grade bonds. The bond offering would purpose to raise about $20 billion, according to studies, and may help bankroll pricey AI development and long run objectives like building data facilities in space.
In addition to the offering of senior unsecured notes, the submitting disclosed about $100.8 billion in money.
SpaceX’s record-setting IPO minted Elon Musk as the world’s first trillionaire. Xavier Collin/Image Press Agency / BACKGRID
The shares on Monday closed at $154.60, giving the company a $2.03 trillion market capitalization. That’s after SpaceX fell more than 8% Wednesday and Thursday before the US market closed on Friday.
SpaceX can be the latest tech giant to flip to debt to finance dear AI to-do lists. This month Alphabet, Amazon and chip titan Nvidia have indicated they might faucet debt markets.
“Investors remain skittish about all these debt offerings on the Street but it’s par for the course in this AI arms race,” said Dan Ives, a managing director at Wedbush Securities. “We are seeing massive debt and equity raises from Big Tech players to fund major capital expenditure buildouts over the coming years.”
SpaceX revolutionized the space industry with its reusable rockets that have lowered the fee of placing satellites into space. Getty Images
SpaceX’s record-setting IPO on June 12 minted Musk as the world’s first trillionaire and raised almost $86 billion. The stock opened at $150 a share, making it the largest-ever IPO and immediately vaulted the company’s valuation above $2 trillion. It closed up 19.6% at $192.45.
Retail buyers helped energy the offering in its first days of trading. Everyday merchants purchased $405 million price of shares in the first 5 classes according to Vanda Research. Retail buyers purchased more SpaceX last week than shopping for across all Magnificent Seven shares mixed, the data confirmed.
SpaceX revolutionized the space industry with its reusable rockets that have lowered the fee of placing satellites into space. The Texas-based company also owns satellite tv for pc web service supplier Starlink, which has turn out to be a major authorities contractor over the past few years and was the only profitable division in 2025. Musk says SpaceX will sooner or later enable people to colonize Mars.
SpaceX’s historic debut opened at $150 a share, making it the largest-ever IPO and immediately vaulted the company’s valuation above $2 trillion. Getty Images
In February, Musk merged SpaceX with his artificial-intelligence startup, xAI.
At the same time, SpaceX is burning through money at a fast clip. Last yr, SpaceX misplaced almost $5 billion as its annual capital expenditures hit $20.7 billion.
In this yr’s first quarter alone, SpaceX spending reached $10.1 billion – with AI accounting for $7.7 billion. That eclipsed its complete spending in the same period last yr of $4.1 billion.
Scott Martin, a accomplice at Kingsview Wealth Management, told The Post earlier this month after the IPO that investor enthusiasm for SpaceX stock was more about perception in Musk than the company’s financials.
“Investors aren’t buying today’s fundamentals – they’re buying Elon Musk, Starlink, AI, space infrastructure and the belief that SpaceX will dominate industries that don’t fully exist yet. That’s exciting, but it also means expectations are getting very high.”
Stay informed with the latest in tech! Our web site is your trusted source for breakthroughs in artificial intelligence, gadget launches, software program updates, cybersecurity, and digital innovation.
For contemporary insights, skilled coverage, and trending tech updates, go to us often by clicking right here.
