Elon Musk Just Claimed That “SpaceX Will Be Worth More Than Earth,” but the Bond Market Strongly Disagrees Roughly six weeks ago, on June 12, Elon Musk’s Space Exploration Technologies (SpaceX) (NASDAQ: SPCX) cemented its name in Wall Street’s record book.
Its initial public offering (IPO) raised $85.7 billion, including the underwriters’ overallotment option, and its market cap quickly vaulted to nearly $3 trillion in the days that followed
Although Wall Street analysts have set some truly lofty price targets for SpaceX stock, the biggest bull in the room continues to be its CEO. On July 17, Musk responded to a commenter on social media platform X (a subsidiary of SpaceX) by stating: “I said SpaceX will be worth more than Earth if we achieve our goals.” Musk has a habit of making otherworldly innovative promises — but this is one target that the bond market simply doesn’t agree with. Bond traders are sending a clear message about SpaceX Before SpaceX went public, it released a lengthy registration statement (S-1) that contained its financials, risk factors, and forward-looking projections, among other details.
The company’s S-1 also noted that debt and equity offerings would be relied on to expand artificial intelligence (AI) start-up xAI’s compute capacity. SpaceX wasted little time raising additional capital after its IPO. On June 23, the company priced $25 billion in debt across five tranches, with maturities ranging from 2031 to 2056, and coupon rates of 5.35% to 6.65%.