SpaceX has launched a $25 billion notes offering, according to a source cited by Reuters, just days after its record-setting initial public offering. The bond sale drew $89 billion in demand, Bloomberg reported, signaling strong investor appetite despite recent market turbulence.
The move comes after SpaceX's IPO, which valued the company at roughly $86 billion according to Axios, and a separate plan to borrow $20 billion. CNBC disclosed that SpaceX holds a cash pile exceeding $100 billion. The company now faces skepticism from some analysts over its high-grade debt strategy, with Bloomberg noting 'a lot of leeway' for the firm to take on leverage.
SpaceX's stock fell below the $150 debut price for the first time since its listing, Forbes reported. This slump has pushed the company's market value toward the $2 trillion mark, according to Bloomberg, as broader market declines wiped $400 billion off SpaceX stock, Fortune noted. The rout follows a blockbuster IPO that was among the largest in history.
The debt offering provides SpaceX with cheap capital for expansion, including its Starship program and Starlink satellite network. However, the stock's decline suggests investors are reassessing growth expectations amid rising interest rates and competition in the space industry.
"SpaceX's wild ride is just getting started," Reuters observed, highlighting the volatility ahead for the company.