Elon Musk’s SpaceX has turned to the bond market for the first time days after a record-breaking stock market debut, as the company seeks new funding to support its growing investments in artificial intelligence and next-generation space technology.The move comes as SpaceX revealed it has more than $100 billion in cash and cash equivalents, highlighting the company’s growing financial strength while it increases spending on ambitious expansion plans.The company said the proceeds from the bond offering will be used for general corporate purposes, repayment of borrowings under the 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 the bond issuance helps preserve ownership while also raising funds,” said Adam Sirhan, chief executive of 50 Park Investments.The bond sale comes as SpaceX ramps up spending on artificial intelligence infrastructure, data centers and development of its next-generation Starship rocket program.
Fall in shares increased after IPO
The bond announcement coincided with another sharp decline in SpaceX shares. The stock fell 9% in early trading on Monday and was down 16% at one point, posting losses for the third consecutive trading session.SpaceX shares have 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 approximately $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 approximately $1.8 trillion.Following the listing, the stock initially surged, sending the company’s market value above that of Amazon and Microsoft before retreating.
Musk becomes the world’s first trillionaire!
The blockbuster IPO also changed Elon Musk’s personal fortunes.Musk currently controls about 42% of SpaceX and holds about 82% of the company’s voting power.His SpaceX stake alone is valued at hundreds of billions of dollars. With his stake in Tesla and other ventures, analysts estimate his net worth has surpassed $1 trillion, making him the world’s first trillionaire.Some estimates suggest that if the value of SpaceX and Tesla continues to rise in the coming years, Musk’s wealth could eventually reach $2 trillion.
AI and Starship Driving Expenses
Founded in 2002 as a rocket company, SpaceX has expanded into satellite internet and artificial intelligence.The company operates Starlink, which provides service to 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 that revenue rose 33% to $18.7 billion last year, driven mainly by growth at Starlink.However, huge spending on AI infrastructure, Starship development, and integration of xAI pushed the company into net losses of about $5 billion.SpaceX recently signed a deal reportedly worth up to $6.3 billion to provide additional computing capacity from Musk’s Colossus 2 data center to AI startup Reflection AI.Despite rising costs, major credit rating agencies have expressed confidence in the company’s financial position.Moody’s has assigned SpaceX a Baa1 rating, while Fitch has given it a BBB+ rating, within the investment-grade sector.The ratings indicate that the company has adequate capacity to meet its financial obligations even as it undertakes ambitious expansion plans.The bond offering highlights SpaceX’s efforts to secure long-term financing as it balances rapid expansion in artificial intelligence, satellite internet and space exploration while controlling the volatility that followed its historic market debut.