SpaceX Shares Dip Below IPO Price as Debt‑Fueled Growth Faces Reality Check

SpaceX shares slipped below their IPO price for the first time.

IPO euphoria meets a reality check

The stock fell 1.5 % to $134, breaking under the $135 IPO level after hitting a brief $2.6 tn valuation that eclipsed Microsoft and Amazon last month. This marks the first close beneath the offering price since the blockbuster listing.

Debt‑funded AI spending and rate‑hike worries

SpaceX raised $25 billion in bonds last month to fund costly AI infrastructure, a move that has drawn scrutiny as investors weigh the impact of potential Federal Reserve rate increases on stretched tech valuations.

Nasdaq 100 inclusion and its fallout

After joining the Nasdaq 100, the shares have dropped 13 %, defying expectations that index inclusion would provide support. The move instead coincided with a wave of profit‑taking and valuation reassessment.

Key takeaways and what to watch

■The company posted a $4.9 billion loss in the prior year, underscoring the speculative nature of many long‑term projects.

■Elon Musk secured an $85 billion war chest to fund ambitions such as orbital data centres and lunar missions, which will take years to materialise.

■The imminent expiry of the first IPO lock‑up tranche will allow employees and early backers to sell stakes, potentially adding further downward pressure.

SpaceX’s share performance reflects the broader tech sector’s sensitivity to debt‑driven growth and macro‑economic uncertainty; until concrete earnings emerge, the stock is likely to remain volatile. – Defne Aydın, Director of Geopolitical Risk and European Markets, ECB