SpaceX stock slides and $25 bn bond sale sparks market concerns

SpaceX’s shares have fallen more than 30% from their post‑IPO peak, trading around $150 after reaching $225 in mid‑June. The decline follows the company’s $25 bn bond issuance, which was launched just weeks after the listing and has drawn warnings of a market bubble.

Analysts note that the bond’s credit spread has widened by roughly 28 basis points since issuance, creating an estimated $300 m paper loss for investors. Short‑seller activity has risen, and some market observers compare the pattern to past “pump‑and‑dump” cycles. Meanwhile, the addition of SpaceX to the Russell U.S. indexes and the Nasdaq 100 is set to force passive funds to purchase billions of dollars of shares, a move that could increase volatility around the upcoming index rebalancing.

The bond’s performance lags behind peer tech issuances, with investors reassessing SpaceX’s credit risk amid its large cash burn and reliance on CEO Elon Musk. The combined stock weakness and bond‑price deterioration have heightened scrutiny of the company’s valuation and financing strategy.