SpaceX Shares Plummet 16% in One Day, Erasing Over $600 Billion in Market Value

SpaceX shares closed at $154.63 on Monday, down around 16% on the day, nearing the $150 IPO opening price and erasing over $600 billion in market value in three days. The company’s valuation now stands just above $2 trillion, below Taiwan Semiconductor Manufacturing Company (TSMC), making it the seventh most valuable company globally.

The sharp decline unwinds a remarkable opening run where shares climbed to almost $226 by June 16, a two-thirds gain before publishing any results as a public firm. Currently, SpaceX trades over 30% lower than its intraday high and only 3% higher than the opening price, resting on a thin pool of freely traded shares and lofty AI expectations, leaving it exposed to reversal once sentiment turned.

**Tapping Debt to Fund AI Push** The latest decline coincided with SpaceX’s inaugural senior unsecured notes offering, targeting around $20 billion. Proceeds will mainly repay a bridge loan from its merger with Elon Musk’s AI venture xAI and fund general corporate purposes. The debut bond sale follows investment-grade credit ratings from Moody’s (Baa1), Fitch (BBB+), and S&P Global (BBB), enabling cheaper borrowing.

SpaceX disclosed a $100.8 billion cash position as of June 19, alongside $29.1 billion in long-term debt. The mix of vast cash and fresh borrowing has unsettled investors, signaling heavy AI and data center spending ahead. Opting for debt spares shareholders from further dilution, preserving their stake while funding expansion.

**Market Impact and Investor Sentiment** The rapid fundraising has raised concerns among investors about the company’s spending plans and debt strategy. Despite the credit ratings providing a positive outlook on its borrowing capabilities, the market reaction indicates skepticism towards the company’s ability to balance growth ambitions with financial prudence.