SpaceX shares experienced a third consecutive day of declines, with the stock falling as much as 10% on Monday morning in New York. This drop follows retreats of more than 8% over Wednesday and Thursday last week, before the Juneteenth federal holiday. The ongoing slide comes after the Elon Musk-led company announced it would be selling investment-grade bonds for the first time, signaling a significant borrowing spree to fund its ambitious artificial intelligence endeavors.
The stock's downturn since Wednesday has erased some of the substantial gains made since its IPO on June 12. Despite the recent pullbacks, SpaceX shares are still up around 27% from their IPO price of $135. The stock had opened at $150 on its first day of trading and at one point soared to a high of around $225 per share, temporarily surpassing Amazon and Microsoft to become the fourth-most-valuable public company.
The bond offering, confirmed by SpaceX, aims to refinance a bridge loan secured earlier this year for the acquisition of xAI, a startup also owned by Elon Musk. While the company did not disclose the offering's size, reports indicated it could be in the range of $20 billion. This debt financing is intended to support long-term expansion plans in AI and space infrastructure, with analysts expecting debt markets to play a crucial role in funding these capital-intensive projects.
