SpaceX shares fall as post-IPO rally reverses, $400 billion wiped out

SpaceX shares continued their downward slide on Tuesday, falling more than 4% in premarket trading following a brutal $400 billion sell-off in the previous session. The stock, which closed at $154.60 on Monday—down 16.43%—has now shed significant value since its record-breaking IPO on June 12. The company’s market capitalization fell to approximately $2 trillion at Monday’s close.

Debt offering raises questions

The selloff was triggered in part by SpaceX’s announcement of a senior unsecured notes offering to raise capital and refinance debt, despite the company holding $100.8 billion in cash as of June 19. Proceeds from the offering will be used to help repay a $20 billion bridge loan taken on to refinance debt accumulated by Elon Musk’s AI company, xAI. Investors were surprised by the move, questioning why the company would borrow when sitting on such a substantial cash pile.

AI strategy and market context

SpaceX also signed a major computing power agreement with open-source AI startup Reflection, providing access to Musk’s Colossus infrastructure. However, concerns over aggressive AI-related capital spending and stretched valuations have weighed on the stock. The decline is part of a broader market sell-off, with technology stocks under pressure as investors assess rising rate expectations. Despite the losses, SpaceX shares remain above their $135 IPO price, and Musk’s net worth—while significantly reduced—still exceeds $1 trillion.