GoKawiilA live feed shows SpaceX CEO Elon Musk on the day of SpaceX's initial public offering (IPO) at the Nasdaq MarketSite, in New York City, U.S., June 12, 2026. Jeenah Moon | Reuters
SpaceX's $25 billion foray into debt markets appeared to be well received by bond markets last week, with huge demand for the offering. But one of the biggest-ever AI bond issuances, less than two weeks after SpaceX's IPO, has highlighted the group's intense financing needs, capital spending plans and future refinancing obligations — and posed a diversification challenge for investors.
Why SpaceX tapped debt markets
The group tapped debt markets on June 22, announcing a senior unsecured notes offering, with sources telling CNBC that the company was looking to raise $20 billion, which was then increased to $25 billion. The company said it would use the net proceeds to "repay the outstanding borrowings under its bridge loan facility in full, to pay related fees and expenses, and any remaining amount for general corporate purposes."
Stock Chart Icon Stock chart icon SpaceX stock soared after its hotly-anticipated IPO. Last week's debt issuance dented investor confidence.
SpaceX received nearly $90 billion worth of orders, people familiar with the fundraising previously told CNBC. They asked not to be named because the details are private. But the move appeared to unnerve equity investors, with SpaceX falling more than 13% for the week after a strong post-IPO run. Chris Beauchamp, chief market analyst at IG, said SpaceX will increasingly have to "work hard to make itself heard," adding there are plenty of offerings from more profitable concerns that can steal the limelight. "Equity investors are one thing, but bond guys are the grown-ups in the room," Beauchamp told CNBC via email. "SpaceX might find it has its work cut out for it, but I suspect the market can absorb the issuance overall." "The timing certainly isn't great, but we have seen brief bouts of panic like this before, and the wagon tends to roll onwards in the end." Christopher Della Fave, senior vice president, capital markets at Post Oak Group, said: "Two weeks after the largest IPO in history, SpaceX is already tapping debt markets while carrying a $5 billion net loss and capex that more than doubled year over year."
Why SpaceX bonds raise diversification questions