SpaceX shares suffered their biggest single-day decline since the company entered the public market, falling 16.4% and wiping out roughly $400 billion in market value. The stock closed at $154.60, marking the sharpest drop since its blockbuster June 12 debut.
The selloff came after investors reacted to SpaceX’s announcement that it plans to raise more than $20 billion through a bond offering. The funds are expected to help repay a bridge loan and support the company’s financial plans.
Despite the debt move, SpaceX reported having about $100.8 billion in cash and cash equivalents, while major credit agencies have maintained positive ratings on the company’s financial strength.
The decline reduced SpaceX’s market valuation to around $2 trillion after the company briefly approached a near-$3 trillion valuation following its highly anticipated public listing. The stock has surged after its debut as investors rushed to gain exposure to Elon Musk’s rocket, satellite, and artificial intelligence ambitions.
The drop also affected Elon Musk’s personal fortune, since the value of his SpaceX holdings fell significantly. Still, long-term investors are still confident in the company’s future, with ARK Invest buying more shares during the decline.
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