SpaceX stock (SPCX) continues to slip just over a week after its blockbuster IPO, with shares now down as much as 10.8% on Monday. SpaceX shares are on course for their biggest one-day decline since they went public earlier this month. Shares are down for the third consecutive session and more than 15% below their record close of $201.80. Even worse, just today, SpaceX has shed about $250 billion in market capitalization.
Despite the drop, shares are still up around 27% from their IPO price of $135. On Monday morning, SpaceX confirmed its first-ever bond sale in a filing. Although the company did not reveal the size of the bond offering, SpaceX confirmed that it “intends to use the net proceeds from the Notes offering to repay the outstanding borrowings under its bridge loan facility in full” and for other related fees and expenses. Bloomberg reported late last week that SpaceX was prepping an offering in the $20 billion range. Investors didn’t welcome the bond offering with open arms, concerned that the offering signals that SpaceX may be overvalued.
Debt offerings can at times weigh on stock prices as investors grow concerned about interest expense and the negative implications of a company’s need for additional funding. Though this offering was expected in some sense, it may be another reason for shares to slip to the downside.
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Furthermore, Elon Musk’s Space Exploration company announced a $6B deal with AI startup Reflection AI on Monday. Reflection AI has agreed to rent data-center capacity from SpaceX following similar agreements with Anthropic and Google. The deal will give SpaceX $150 million per month in revenue, starting July 1 and continuing through the end of 2029, sources told the Wall Street Journal. If completed, the deal would be worth $6.3 billion.