A newcomer that has been listed for less than a week.

SpaceX, ticker SPCX, the largest IPO in history worldwide, with Elon Musk personally bringing this 24-year-old rocket company to Nasdaq. The offering price was $135, opening at $150 on the first day, reaching a intraday high of $225.64 by Tuesday, with a market value once touching over $2.4 trillion. Elon Musk’s personal net worth briefly hit an unprecedented trillion-dollar level in human history.
Then, just as everyone thought this "forever rising" bull would continue to run, it suddenly plummeted sharply.
It once dropped over 10% during trading.
The decline narrowed by the close, ending down 3.56% at $185 per share. Including after-hours trading, it fell more than 2%, and from the high of $225 on Tuesday, the total retracement has reached 18%.
Even when looking at a longer timeline, from the $135 IPO price to the $185 closing price, there’s a paper profit of 37%, but for retail investors who chased above $200, this one night completely shocked them.
The trigger for this incident was revealed an hour ago by Bloomberg.
Bloomberg cited two insiders saying that SpaceX’s underwriters are preparing to hold a phone call with investors as early as next Monday to discuss a bond issuance of at least $20 billion in investment-grade U.S. dollar bonds. The funds raised are not for building rockets or launching Starship, but to pay off an old debt: a bridge loan of $24k maturing in September 2027.
Most people may not have noticed this bridge loan, but it has been on SpaceX’s balance sheet all along. According to data disclosed in the IPO filing, as of March 31 this year, SpaceX’s total long-term debt was $29.1 billion, with the $20B bridge loan accounting for a large portion. Five investment banks—Bank of America, Citigroup, J.P. Morgan, Goldman Sachs, and Morgan Stanley—underwrote this transitional financing, and are now expected to jointly lead this bond issuance.
In other words, the $75 billion raised from the largest IPO in history did not automatically eliminate that $20B old debt. Now, the company is entering the bond market to issue investment-grade bonds to refinance it.
After the news broke, the market’s first reaction was very honest: sell. $SPCXB
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