SpaceX sheds $600B in market value on bond sale plan

SpaceX shares plunged after the company announced plans for a $20 billion investment-grade bond sale. The debt will fund AI and infrastructure expansion, according to a statement. The decline erased about $600 billion in market value.

The bond offering is SpaceX's first in the investment-grade market. It marks a shift from the company's previous reliance on equity funding. The proceeds are earmarked for Starlink satellite expansion, Starship development, and AI computing infrastructure.

The size of the sale relative to the company's valuation raised questions about leverage, though the investment-grade rating signals confidence in cash flow. The stock's drop reflects the market's reassessment of the funding strategy.