SPCX Falls Overnight: SpaceX Prices $25B Bond Sale To Refinance X, xAI Debt — Analyst Says Wait For ‘Better Entry’

The company has priced a $25-billion bond sale, and refinancing could lower annual interest costs to $1.5 billion, compared with $1.8 billion on prior X and xAI debt.

• SpaceX priced five tranches of senior unsecured notes with coupons ranging from 5.35% to 6.65% and maturities from 2031 to 2056.
• Proceeds will be used to repay a $20 billion bridge loan used to clear xAI-related debt.
• Susquehanna initiated coverage of SpaceX with a Neutral rating and a $170 target, noting that the valuation depends on “very aggressive” growth assumptions.

Shares of SpaceX (SPCX) slipped 1% overnight heading into Wednesday after the company tapped the bond market for $25 billion, cutting interest costs but adding new leverage to Musk’s sprawling rocket-to-AI empire.

SPCX stock fell as low as $147.11 early Tuesday, slipping below the $150 level from its first Nasdaq trading day after the June 11 IPO. The stock later recovered, ending Tuesday up about 1% at near $156.

SPCX Prices $25B Bond Sale 

The company priced five tranches of senior unsecured notes on Tuesday, with coupons ranging from 5.35% to 6.65% and maturities stretching from 2031 to 2056. The offering is expected to settle on Friday. SpaceX plans to use the proceeds to repay its bridge loan facility in full, pay related fees and expenses, and use any remaining amount for general corporate purposes.

The bond sale replaces a $20 billion bridge loan SpaceX used to pay off debt tied to xAI, the AI startup founded by Elon Musk and acquired by SpaceX in February. The refinancing could lower annual interest costs. X and xAI would have spent $1.8 billion servicing $17.5 billion of prior debt this year, while SpaceX’s new $25 billion bond sale is expected to cost about $1.5 billion annually, Bloomberg noted. Demand was reportedly strong, with orders reportedly peaking near $89 billion. 

SpaceX Credit Hinges On Starlink 

SpaceX’s credit profile is largely underpinned by Starlink’s growth trajectory and its government-backed launch business, even as xAI continues to generate significant operating losses. xAI generated $3.2 billion in sales last year but posted a $6.4 billion operating loss, according to filings. Those losses have ballooned from about $1.6 billion in 2024.

By moving into the investment-grade bond market, SpaceX gains access to cheaper and deeper funding than xAI could secure on its own. The development comes as Musk pushes deeper into AI infrastructure and compute-heavy expansion. Recent xAI-related deals with Anthropic, Google and Reflection are expected to boost SpaceX’s AI-linked revenue, but the business still requires heavy spending.

SpaceX had $100.8 billion in cash and cash equivalents as of June 19, but its IPO filing warned that its “substantial level of indebtedness could materially” hurt its finances and make it more vulnerable to adverse economic conditions.

Analyst Flags Stretched Valuation For SPCX

On Monday, Susquehanna Financial Group initiated coverage of SpaceX with a ‘Neutral’ rating and a $170 price target, implying a 9% upside from current levels. The brokerage cited strong positions in launch, Starlink and AI, but warned that the stock already prices in aggressive growth. “We believe the current valuation requires premium multiples on very aggressive revenue and EBITDA growth assumptions,” analyst Charles Minervino said, adding that SpaceX still faces “a wide range of outcomes,” according to Investing.com. 

He said that the risk makes it better to wait for “a better entry point on the stock,” even as he forecast revenue to grow at a 56% compound annual rate through 2030.

How Do Retail Traders Feel About SPCX?

On Stocktwits, retail sentiment for SPCX fell to its lowest level on record at 42/100, turning “bearish” from “neutral” a day earlier as IPO-fueled excitement continued to fade. Message volume also declined 35% over the past 24 hours. 

One user said, “It's crazy to go back to market to ask for $25 billion more cash in just 10 days. A giant red flag imo.”

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Meanwhile, another user said, “When you see debt pushed this far out on the curve, it usually signals two things: confidence in future cash flows, and a lot of capex still ahead.”

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