SpaceX Shares Drop 16%, Wipe $400 Billion as $20 Billion Bond Offering Launches
SPCX•SpaceX shares tumbled 16% to close at $154.60 on Monday, falling below their IPO-day level and erasing roughly $400 billion in market value, leaving them about 23% off the June 16 peak. The company launched a $20 billion senior unsecured notes offering to repay $29.1 billion of bridge debt, citing $100.8 billion cash.
1. Sharp Stock Decline and Market Impact
SpaceX shares fell 16% to $154.60 on Monday, marking a three-day losing streak and slipping below the IPO-day close of $160.90. The selloff erased about $400 billion in market value and left shares roughly 23% below the June 16 intraday peak of $201.80.
2. $20 Billion Senior Notes Offering
The company announced its first public bond issuance—a senior unsecured notes offering targeting at least $20 billion. Proceeds are earmarked to repay $29.1 billion of bridge financing, while the firm reported $100.8 billion in cash and cash equivalents as of June 19.
3. Valuation Concerns and Analyst Perspectives
Investors are questioning whether SpaceX’s rapid ascent justifies its premium valuation, with shares trading near 29× sales and 71× EV/EBITDA on 2027 forecasts. KeyBanc has assigned a neutral rating, while six analysts maintain Buy recommendations, reflecting divided sentiment.
