Elon Musk’s SpaceX has turned to the bond market for the first time, days after its record-breaking stock market debut, as the company seeks fresh funding to support its growing investments in artificial intelligence and next-generation space technology.The move comes as SpaceX disclosed that it held more than $100 billion in cash and cash equivalents, highlighting the company’s growing financial strength even as it ramps up spending on ambitious expansion plans.The company said the proceeds from the bond offering would be used for general corporate purposes, repayment of borrowings under an existing bridge loan facility and related expenses, Reuters reported.Analysts said the decision allows SpaceX to raise capital without issuing additional shares and diluting existing shareholders.“Musk maintaining supermajority voting control through a dual-class structure means issuing bonds helps preserve ownership while raising funds,” Adam Sarhan, chief executive of 50 Park Investments said.The bond sale comes as SpaceX accelerates spending on artificial intelligence infrastructure, data centres and development of its next-generation Starship rocket programme.
Shares extend post-IPO decline
The bond announcement coincided with another sharp fall in SpaceX shares. The stock dropped as much as 9% in early trading on Monday and at one stage was down 16%, extending losses for a third consecutive trading session.SpaceX shares have now lost nearly a quarter of their value over the past three trading days after an explosive start following the company’s Nasdaq debut on June 12.The company raised about $75 billion through its initial public offering after selling more than 555 million shares at $135 each, making it the largest IPO ever and valuing SpaceX at nearly $1.8 trillion.Following the listing, the stock surged initially, briefly pushing the company’s market value above those of Amazon and Microsoft before retreating.
Musk becomes world’s first trillionaire
The blockbuster IPO also transformed Elon Musk’s personal fortune.Musk currently controls about 42% of SpaceX and holds roughly 82% of the company’s voting power.The value of his SpaceX stake alone is estimated at hundreds of billions of dollars. Combined with his holdings in Tesla and other ventures, analysts estimate his net worth has crossed $1 trillion, making him the world’s first trillionaire.Some estimates suggest Musk’s fortune could eventually approach $2 trillion if SpaceX and Tesla continue to gain value over the coming years.
AI and Starship driving spending
Founded in 2002 as a rocket company, SpaceX has expanded into satellite internet and artificial intelligence.The company operates Starlink, which serves more than 10 million users through thousands of satellites in orbit.Earlier this year, SpaceX merged with Musk’s artificial intelligence company xAI, a move the company described as central to its long-term plans for AI-powered computing infrastructure.Financial filings showed revenue rose 33% to $18.7 billion last year, driven largely by growth in Starlink.However, heavy spending on AI infrastructure, Starship development and the integration of xAI pushed the company into a net loss of nearly $5 billion.SpaceX also recently signed an agreement reportedly worth up to $6.3 billion to provide additional computing capacity from Musk’s Colossus 2 data centre to AI startup Reflection AI.Despite rising costs, major credit rating agencies have expressed confidence in the company’s financial position.Moody’s assigned SpaceX a Baa1 rating, while Fitch gave it a BBB+ rating, both within investment-grade territory.The ratings indicate that the company has sufficient capacity to meet its financial obligations even as it pursues ambitious expansion plans.The bond offering highlights SpaceX’s efforts to secure long-term funding as it balances rapid expansion in artificial intelligence, satellite internet and space exploration while navigating the volatility that has followed its historic market debut.
