SpaceX falls 16% in worst drop since IPO as market pressure builds
SpaceX dropped 16.4% in its largest single-day decline since its 12 June initial public offering (IPO), ending a three-day losing streak that has erased much of its post-listing gains
SpaceX shares fell sharply on Monday, extending a recent sell-off as investors reacted to fresh financing activity and upcoming share unlocks that could significantly expand the company's public float.
SpaceX dropped 16.4% in its largest single-day decline since its 12 June initial public offering (IPO), ending a three-day losing streak that has erased much of its post-listing gains, says Yahoo Finance.
The stock now trades about 14% above its $135 IPO price after previously reaching a high of $225, when the company briefly became the fourth most valuable public company, ahead of Amazon and Microsoft.
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The decline comes as SpaceX confirmed its first-ever bond issuance, intended to repay a bridge loan used for the February acquisition of Elon Musk's xAI startup. The company did not disclose the size of the bond in filings, though reports have placed the offering at roughly $20 billion. Investors often view large debt issuances cautiously due to potential interest costs and refinancing risks.
A consortium of major banks, including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs and Morgan Stanley, provided the original bridge financing and are expected to help structure and manage the bond deal.
Market pressure is also expected from upcoming equity lock-up expirations. Strategists anticipate a 20% insider share unlock in mid-August, followed by further releases that could allow insiders to sell up to 44% of shares by early September. Analysts note this could significantly increase the company's public float, currently about 4.2%, by roughly 900%.
