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SpaceX shares have fallen about 22% from their post-IPO high as investors reassess the company’s valuation, debt plans and costly push into artificial intelligence.
The decline erased more than $600 billion in market value within three sessions, although demand for its debut bond sale showed that large investors still support the company’s credit profile. Meanwhile, Bitcoin fell less than 1% over the period, creating a sharp contrast in market volatility.
SpaceX entered public markets this month through the largest initial public offering on record. The company sold shares at $135, raised $75 billion and briefly reached a valuation above $2 trillion. Its stock later climbed near $225 before selling pressure pushed the price back toward the mid-$150 range.
The fall accelerated after SpaceX announced plans to borrow billions for its AI expansion. Shares dropped 16% on Monday and traded below the $150 level on Tuesday before recovering.
The thin number of shares available for trading also increased price swings as early investors reassessed future growth assumptions. The retreat followed a wider technology sell-off as traders questioned returns from heavy AI spending.
SpaceX priced $25 billion of senior unsecured bonds across five tranches. The bonds carry coupons from 5.35% to 6.65% and mature between 2031 and 2056. The company plans to repay a $20 billion bridge loan and use any remaining funds for fees and general corporate needs. Moody’s, Fitch and S&P assigned investment-grade ratings after the IPO, all with stable outlooks.
Investor orders reached about $89 billion, more than three times the final sale size. The demand allowed SpaceX to reduce borrowing costs during the marketing process. The new bonds are expected to cost about $1.5 billion a year, below the estimated $1.8 billion tied to older X and xAI debt.
Susquehanna started coverage with a Neutral rating and a $170 price target. Analyst Charles Minervino said the current valuation requires “premium multiples on very aggressive revenue and EBITDA growth assumptions.” He also said investors may prefer to wait for “a better entry point” despite forecasting rapid revenue growth through 2030.
Stanislav Galandzovskyi also questioned whether the company has shown enough proof that its wider business can scale. He said, “The IPO was a discount offer everyone rushed,” before asking where the company’s retention, distribution and long-term growth proof would come from.
Both comments reflect doubts about valuation rather than demand for SpaceX services. Retail sentiment weakened, while message activity around the stock fell during the latest trading session.
Credit agencies and bond buyers have focused on Starlink and SpaceX’s launch contracts. Starlink produced about $4 billion in operating profit in 2025, while xAI recorded $3.2 billion in sales and a $6.4 billion operating loss. SpaceX also reported about $100.8 billion in cash as of June 19.
The company is using its stronger space and satellite operations to support AI infrastructure, data centers and recent acquisitions. Fixed-income investors accepted that structure, but equity traders have reacted to the added debt and heavy spending. SpaceX must fund Starship, Starlink and xAI while managing annual interest costs from its first public bond issue.
Also Read: SpaceX Stock Rebounds 2% After Falling Below $150 Debut Price and $2 Trillion Value
