SpaceX Shares Fall 16% on Debt Plan

The drop came just weeks after a record start on the stock market. SpaceX's IPO (initial public offering) on 12 June raised nearly $86 billion, the largest ever, and briefly made Musk the world's first trillionaire. The stock opened at $150 and closed almost 20% higher at $192.45. However, the company is spending fast: it lost close to $5 billion last year, and in the first quarter alone it spent $10.1 billion, with AI taking $7.7 billion. Starlink, its satellite-internet business, was the only profitable part of the company in 2025.

If the sale goes ahead, SpaceX would become the latest technology giant to borrow money to fund expensive AI projects, joining Alphabet, Amazon and Nvidia. Dan Ives of Wedbush Securities said investors were 'skittish' about all this borrowing but called it normal 'in this AI arms race.' Others doubt whether the company's huge value rests on solid ground. Scott Martin of Kingsview Wealth Management said buyers were drawn less by today's results than by faith in Musk, Starlink and industries that 'don't fully exist yet,' warning that expectations had grown very high.