SpaceX shares plummet, losing $600 billion in three days

SpaceX shares have experienced a significant downturn, losing more than $600 billion in market capitalization over three days. The stock closed at $154.63 on Monday, down about 16% for the day and nearing its initial public offering price of $150. This marks a sharp reversal from its post-IPO surge, where it briefly surpassed tech giants like Amazon and Microsoft in valuation.

The company's valuation now stands just above $2 trillion, placing it seventh globally and below Taiwan Semiconductor Manufacturing Company (TSMC). This correction erases much of the gains seen after its June 12 IPO opening at $150, which saw the stock climb to nearly $226 by June 16. Currently, SpaceX trades more than 30% below its intraday high and only 3% above its opening price.

The initial rally was fueled by a limited number of available shares and high expectations for the company's artificial intelligence ambitions. However, this left it vulnerable to a sharp reversal as investor sentiment shifted. The recent decline coincided with SpaceX's move into the corporate debt market, announcing its first unsecured bond issuance aimed at raising approximately $20 billion.

Proceeds from the bond sale are primarily intended to repay a bridge loan taken out during its acquisition of Elon Musk's AI company, xAI, earlier this year. The remaining funds will be used for general corporate purposes. This move into corporate debt follows SpaceX securing investment-grade credit ratings from Moody's, Fitch, and S&P Global, which should facilitate cheaper borrowing and access to a broader investor base.