Musk's Rocket IPO Goes Full Re-Entry: $20B Bond Sale Sends SPCX Plunging 16% 🚀

SpaceX (SPCX) shares fell roughly 16% on June 22 after the company filed with the U.S. Securities and Exchange Commission for its first-ever bond offering, marking the stock's worst single session since its June 12 debut and extending a three-day losing streak. Shares closed at $154.60, just 14% above the $135 IPO price and approximately 31% below the all-time high of $225.64 set on June 16. Bloomberg reported the senior unsecured notes sale targets at least $20 billion.

The proceeds will repay a bridge loan SpaceX drew earlier this year to fund Elon Musk's February acquisition of xAI. Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley arranged that financing and will manage the new deal, according to Reuters. Jose Torres, senior economist at Interactive Brokers, told clients investors are "wary of the substantial cash required to fund technological ambitions."

The slide compounds a rocky stretch for the company following its historic Nasdaq debut, which raised $75 billion at $135 per share. After opening at $150 and briefly ranking among the world's five most valuable public companies, SpaceX has seen most of those gains erased. A $60 billion Cursor acquisition added further dilution, while S&P Global projects negative free cash flow through 2029 amid ongoing Starship and AI capital requirements. Jeff Jacobson, strategist at 22V Research, estimates insiders could sell up to 44% of SpaceX shares by early September as lockup expirations expand the tradeable float by roughly 900%.

As of June 19, SpaceX disclosed $100.8 billion in cash on hand. Both Fitch and Moody's assigned investment-grade ratings to the proposed notes, citing Starlink's recurring revenue and SpaceX's dominant launch position. The company's first public earnings report is scheduled for August 6.