SpaceX shares (SPCX) suffered their sharpest one-day decline since the company's stock market debut earlier this month, sliding as much as 10.8% on Monday. The selloff extended a three-consecutive-session losing streak and pushed the stock more than 15% below its all-time closing high of $201.80. In a single trading session, SpaceX's market capitalization contracted by roughly $250 billion.
IPO Gains Still Intact, but Peak Buyers Are Hurting
Despite the brutal recent stretch, SPCX has not wiped out all of its post-listing gains. Measured from the IPO price of $135, shares are still up approximately 27%, which means investors who bought in at the listing remain in the green. Those who chased the stock near its record high, however, are now sitting on substantial paper losses.
Bond Sale Debut Sparks Valuation Worries
The main catalyst behind Monday's drop was SpaceX's announcement of its very first bond offering, confirmed in a filing released Monday morning. The company did not disclose the total size of the raise but stated that it plans to apply the net proceeds toward fully repaying outstanding borrowings under its bridge loan facility, along with related fees and expenses.
Bloomberg had reported late last week that SpaceX's bankers were preparing a bond offering of at least $20 billion. That reported scale unsettled investors, many of whom interpreted the debt raise as a signal that SpaceX may be overvalued at current levels or that it is more financially stretched than the market had assumed.
Debt issuances are generally a headwind for share prices: they add to interest expenses and raise the question of why a company with a high-flying stock needs outside capital in the first place. While some form of bond offering had been anticipated, its official confirmation gave sellers a fresh reason to exit positions, making it another contributor to the downside pressure.
$6.3 Billion Reflection AI Data-Center Deal
Monday did bring one piece of upbeat news for SpaceX. Elon Musk's space exploration company announced a $6 billion deal with AI startup Reflection AI, under which Reflection AI will rent data-center capacity from SpaceX. The arrangement follows a pattern SpaceX has already established: similar agreements have previously been signed with Anthropic and Google.
Sources who spoke with the Wall Street Journal said the deal will generate $150 million per month for SpaceX, with payments set to begin July 1 and continue through the end of 2029. Should the agreement run its full course, the total value would reach $6.3 billion, adding a significant and recurring revenue stream beyond the company's core launch business.
