Local time June 22, SpaceX (SPCX) stock closed at $154.60, down 16.43% for the day, evaporating approximately $400 billion in market value. This is the third consecutive trading day decline for the stock, with a cumulative drop of over 23% since June 17, and a total market cap loss of more than $600 billion. SPCX's stock price not only fell below the IPO first-day closing price of $160.95 but also retreated more than 30% from the intraday high of $225.64 set on June 16. Is this plunge a short-term emotional release or a reassessment of valuation logic? Why did debt issuance become the fuse for the stock price crash?

The immediate trigger for this decline was SpaceX's announcement to initiate its first investment-grade bond issuance. According to the company's 8-K filing, SpaceX has begun the process of issuing its first senior unsecured notes, with an expected fundraising scale of at least $20 billion. The funds raised will mainly be used to repay a similarly sized bridge loan—this loan was borrowed by SpaceX in March this year to finance its debt obligations related to the former Twitter (now X platform) and xAI.
From a capital structure perspective, this bond issuance occurred just over a week after the IPO. The IPO itself raised nearly $86 billion for SpaceX. Entering the debt market again for large-scale financing in such a short period has triggered market concerns about capital needs.