SpaceX’s stock decline erases early gains, raising concerns over back-to-back capital raises totaling $25 billion.
SpaceX (SPCX) shares are set to close their first full week as a public company down 18%, trimming the company’s market capitalization to near $2 trillion after peaking above $2.5 trillion. The stock has fallen below its $150 opening price, nearing the $135 IPO level, mirroring a pattern seen in other high-profile debuts that later slipped below offer prices.
The decline follows a $25 billion bond sale that attracted $90 billion in orders, prompting SpaceX to upsize the deal from an initial $20 billion target. However, paper losses on the debt offering have since reached $305 million, fueling skepticism about the company’s financial strategy. Analysts question why SpaceX, fresh from its IPO, needed to raise additional capital so quickly.
Market sentiment has soured on the back-to-back raises, with some viewing the debt sale as a sign of urgency to secure funding while investor appetite remains strong. The move has also reignited debates over the sustainability of the Space and AI sectors, which have driven trillions in paper wealth over the past year.