SpaceX Earns Baa1, BBB+ and BBB Ratings After $85.7bn IPO, Tesla Shares Slip
TSLA•SpaceX secured investment-grade debt ratings (Moody’s Baa1, Fitch BBB+, S&P BBB) after its $85.7bn IPO, while Tesla shares fell from record highs. Elon Musk labeled Tesla’s Baa3 rating “ridiculously low,” highlighting potential undervaluation despite SpaceX’s strong credit profile.
1. SpaceX Achieves Investment-Grade Ratings
SpaceX obtained its first investment-grade long-term issuer ratings from Moody’s (Baa1), Fitch (BBB+) and S&P Global (BBB) following its record $85.7 billion IPO. These endorsements position the company to borrow more cheaply as it expands Starlink satellite broadband and its AI compute infrastructure.
2. Tesla Share Performance and Musk Comments
Tesla shares slipped from their record highs on the bond rating announcements, with volatility intensified by CEO Elon Musk’s remark that Tesla’s Baa3 rating is “ridiculously low.” His comment underscores a perceived mismatch between Tesla’s credit standing and SpaceX’s newly upgraded profile.
3. Agency Assessments and Growth Outlook
Rating agencies pointed to SpaceX’s commanding launch market share—over 80% of global mass to orbit since 2023—and 12 million Starlink subscribers as key strengths, while flagging capital intensity, negative free cash flow and execution risks tied to Starship V3 and AI buildout. Robust revenue and earnings growth is forecast through 2028, supported by $75 billion in third-party compute agreements.
