Space Exploration Technologies Corp (SpaceX) shares traded at $156.19 before the opening bell on Wednesday, following a 0.98% gain on Tuesday that closed at $156.11, after briefly dipping below its first-day Nasdaq opening price and hitting an intraday low of $147.11.
Bond Market Demand Surges
The company completed a $25 billion sale of senior unsecured notes, according to a source familiar with the deal. The offering generated approximately $85 billion in orders, representing a 3.4 times oversubscription. These bonds, which take priority over equity but are not tied to specific assets, are being used to refinance bridge loans and support spending on artificial intelligence infrastructure and rocket development, rather than issuing additional shares.
"This debt choice over additional equity clearly prioritizes avoiding further shareholder dilution," said Adam Sarhan, CEO of 50 Park Investments, in comments to Reuters. The bond sale represents about 1.2% of SpaceX's $2.06 trillion market capitalization, but nearly 30% of the $85.7 billion raised in its June 12 initial public offering.
Equity Market Caution
While credit investors have shown strong appetite for long-term loans, equity traders are adopting a more cautious stance. S3 Partners reports that short interest in SpaceX is approximately 5% to 7% of the float, equating to roughly 40 million shares sold short. "Shares are getting easier to borrow," said Sam Pierson, S3's research chief, noting that borrowing costs are around 60 basis points (0.60 percentage point).
Options markets reflect similar sentiment. Traders are pricing in about a 40% probability that SpaceX shares will fall below $130 by mid-September. "The options activity has gotten more balanced," said Steve Sosnick, chief strategist at Interactive Brokers. Across some July-to-September contracts, open put options—which benefit if shares fall—are nearly double the open call contracts.
Upcoming Catalysts
Jefferies estimates that SpaceX could see $2.68 billion in passive buying when it is added to the Russell indexes. The company is also scheduled to join the Nasdaq 100 on July 6. The quiet period for IPO bank analysts ends on July 7, after which coverage from those banks is expected to commence.
SpaceX sits at the center of the AI debt cycle, alongside Nvidia, which is seeking $20 billion in bonds—its first bond issue since 2021. MarketWatch has described the SpaceX deal as one of the largest AI-related debt raises to date. However, the company still faces high costs for rocket and satellite development, particularly with the Starship program and expanding AI infrastructure.
Financial Performance and Challenges
SpaceX grew revenue by 33% to $18.67 billion last year but ended with a net loss due to continued heavy spending and the integration of xAI, Elon Musk's artificial intelligence startup. Starlink remains the primary cash generator, while Starship and AI infrastructure investments keep costs elevated.
The stock is currently trading at about 141 times 2025 revenue, according to Reuters. Shareholders may look to sell after the first earnings call, subject to lock-up terms. The next Starship launch is scheduled for June 29. Any delays, a technology downturn, or higher interest rates could pressure shares more quickly than bonds.
At present, the shares are trading between $150, their Nasdaq opening price, and the $135 IPO price. SpaceX has secured cash from the debt market, but equity investors are still assessing the potential returns from those funds.
