SpaceX Shares Plunge as Company Raises $20 Billion in Debt

Following a record-breaking initial public offering on June 12, 2026, that raised approximately $85.7 billion, Space Exploration Technologies Corp. experienced a sharp market correction. The company's stock peaked at $225.64 on June 16, briefly valuing the firm at $2.66 trillion and making it one of the most valuable companies globally. However, shares plunged 16.4% on June 22, erasing roughly $600 billion in market value in a single session.

The sell-off was primarily triggered by the disclosure that the company plans to sell senior unsecured notes to raise approximately $20 billion. SpaceX intends to use these funds to refinance a bridge loan from its merger with xAI and to finance costly expansions in artificial intelligence and space-based data centers. Additional pressure came from the announcement of a $60 billion all-stock acquisition of the AI coding startup Cursor and a CCC ESG rating from MSCI.

Despite maintaining roughly $100.8 billion in cash, SpaceX remains unprofitable, reporting a $4.9 billion loss in 2025 and a $4.28 billion loss in the first quarter of 2026. Analysts have warned that the stock's high price-to-sales ratio reflects speculative excess. Further volatility is expected as tiered insider lockup expirations begin in late July and August, which will significantly increase the tradable float. The downturn coincided with a broader tech sector retreat driven by concerns over AI infrastructure spending and hawkish monetary policy signals from Federal Reserve Chair Kevin Warsh.