Elon Musk’s SpaceX has suffered a sharp market setback, with shares falling 16% in a single trading session as investors reacted to plans for a major bond issuance to support the company’s artificial intelligence ambitions.
SpaceX shares closed at US$154.60 on Monday, their lowest level since the company began trading publicly earlier this month. The decline extended a three-day sell-off that has wiped more than US$600 billion from the company’s market value, bringing its valuation to just above US$2 trillion.
The sell-off has also affected Musk’s personal fortune, which reportedly fell by around US$150 billion during the session, although he remains the world’s wealthiest individual by a substantial margin.
The decline followed SpaceX’s announcement that it plans to issue investment-grade bonds for the first time, with reports indicating the company is seeking to raise at least US$20 billion. The proceeds are expected to support its growing AI strategy and refinance debt linked to the company’s expansion.
Investor concerns have centred on the scale of funding required to pursue SpaceX’s ambitions across space technology, satellite communications and artificial intelligence. The company’s push into AI intensified following its acquisition of Musk’s xAI, placing it among a growing group of technology companies spending heavily on computing infrastructure and advanced AI capabilities.
Despite the sharp correction, SpaceX remains one of the world’s largest listed companies. Its shares are still trading above their IPO price of US$135, following a record US$75 billion public offering on June 12.
The company’s early trading performance has been marked by exceptional volatility, driven by strong retail investor demand and a relatively limited number of shares available for public trading. SpaceX’s valuation briefly climbed to more than US$2.7 trillion before the latest retreat.
Analysts say the market reaction reflects a broader reassessment of high-growth technology companies whose valuations rely heavily on long-term AI opportunities. While SpaceX retains leading positions in launch services, satellite internet through Starlink and space-based infrastructure, investors are increasingly scrutinising whether its ambitious expansion plans can deliver returns commensurate with its enormous valuation.
