SpaceX shares declined more than 14% on Monday, marking their third consecutive day of losses. This drop followed news that Elon Musk’s rocket company might undertake a substantial borrowing initiative, as detailed in a recent regulatory filing.
The company, which completed an initial public offering earlier this month, revealed plans to sell investment-grade bonds. This bond offering aims to raise approximately $20 billion, according to reports, and is intended to finance costly artificial intelligence (AI) development and long-term objectives such as building data centers in space. The filing also disclosed about $100.8 billion in cash alongside the proposed offering of senior unsecured notes.
SpaceX’s stock traded at $158.70 on Monday afternoon, a 14% decrease from Thursday’s closing price. This valuation gives the company a market capitalization of $2.09 trillion. The decline follows earlier drops of more than 8% on Wednesday and Thursday before the U.S. market closed for the weekend.
The company’s move to secure debt for AI initiatives places it among other major technology firms. Alphabet, Amazon, and Nvidia have also indicated their intention to access debt markets this month to fund their AI-related projects. Dan Ives, a managing director at Wedbush Securities, noted that investors are cautious about these debt offerings but described them as typical in the current AI competition. He added that significant debt and equity raises are occurring across Big Tech to support major capital expenditure buildouts in the coming years.
SpaceX’s IPO on June 12 was a record-setting event, raising nearly $86 billion and establishing Musk as the world’s first trillionaire. The stock opened at $150 per share, making it the largest IPO ever and immediately pushing the company’s valuation above $2 trillion. It closed up 19.6% at $192.45 on its first day of trading.
Retail investors significantly contributed to the IPO’s initial trading performance. According to Vanda Research, everyday traders purchased $405 million worth of shares in the first five sessions. This retail investment in SpaceX last week exceeded their combined purchases across all Magnificent Seven stocks.
SpaceX has transformed the space industry through its reusable rockets, which have reduced the expense of deploying satellites. The Texas-based company also operates Starlink, a satellite internet service provider that has become a key government contractor in recent years and was its sole profitable division in 2025. Musk has stated that SpaceX aims to enable human colonization of Mars.
In February, Musk merged SpaceX with his artificial intelligence startup, xAI. This integration aligns with the company’s stated goals for AI development, which are now a focus for the proposed bond offering.
Despite its ambitious plans and recent IPO success, SpaceX is consuming cash rapidly. The company’s financial strategy, including the pursuit of significant debt, reflects the capital-intensive nature of its long-term projects and AI development.
The market will observe how the proposed bond offering progresses and its impact on the company’s valuation. Future developments will likely center on the execution of its AI and space data center initiatives, and how these investments affect its cash flow and profitability.