SpaceX already needs to raise more cash, and its stock is falling 10%

By William Gavin

Elon Musk's company is turning to the bond market less than two weeks after its blockbuster IPO

SpaceX shares have been volatile since the company went public on June 12.

Fresh off its historic initial public offering, SpaceX needs to raise even more cash - this time through the debt market.

The company said in a Monday filing that it planned to offer senior unsecured notes to "qualified institutional investors." Last week, Moody's Ratings, Fitch Ratings and S&P Global Ratings awarded SpaceX investment-grade bond ratings.

SpaceX (SPCX) didn't reveal exactly how much it was seeking to raise or the terms of the offering. However, it did note that proceeds would be used to help pay off its $20 billion bridge loan, which accounts for most of its $29 billion worth of debt, according to a filing.

That bridge loan, which matures in September 2027, was used to pay off debt from xAI, a startup founded by SpaceX CEO Elon Musk. The company was acquired by SpaceX in February.

Much of SpaceX's remaining long-term debt is tied to obligations related to "certain AI infrastructure assets recorded as failed sale-leaseback transactions," the company said in its IPO paperwork.

In its IPO less than two weeks ago, SpaceX made $85.7 billion in proceeds, more than any other offering in history. The company said it had $100.8 billion in cash and cash equivalents as of June 19, or more than six times its cash as of March 31, according to filings.

Much of that cash is expected to be used for SpaceX's long-term efforts on pricey projects ranging from space-based data centers to developing Starship, a massive rocket that underpins much of the company's plans. It is also building out the Terafab - a research facility in Texas that Musk has said is capable of making "a few thousand wafers" per month for chips -alongside (TSLA), which is also led by Musk.

Oppenheimer analysts in a note to clients last week said SpaceX would likely raise additional capital primarily through debt, following a template set by Tesla.

SpaceX shares were down about 10% in Monday morning action and on track to log their third down day in a row. At a recent price of $165.66, the stock still trades above its $135 IPO price.

Analysts at KeyBanc suggested Monday that SpaceX's stock price already bakes in sufficient optimism for the company's ambitions. They launched coverage of SpaceX's stock with a sector-weight rating. The analysts wrote in a note to clients that SpaceX "possesses significant disruptive growth avenues" but that its potential is already reflected in its current valuation.

Shares trade at about 29 times estimated 2027 sales and about 71 times estimated 2027 earnings before interest, taxes, depreciation and amortization, based on the analysts' models - "reflecting a significant premium vs. most peers," the KeyBanc team said.

Early analyst reactions to SpaceX have been mixed. Some have been generally favorable toward SpaceX plans - which include dominating the realm of rocket launches, satellite communications and artificial intelligence - and the stock. Others, like Pitchbook's Franco Granda, have warned that investors should be skeptical of SpaceX's timelines.

The research firm Zephirin previously launched coverage on SpaceX with a buy rating and a $310-per-share price target, which implies upside of 68% from Friday's closing price. Analysts at Oppenheimer have a $250-per-share price target, which implies a 35% increase.

-William Gavin

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06-22-26 1049ET