SpaceX Stock Plummets 16.4% After IPO Surge, Marking Third Consecutive Loss

SpaceX (SPCX) stock closed down 16.4% on Monday, marking its largest single-day decline since its IPO and the third consecutive trading day of losses. The selloff follows a dramatic rally that saw the stock surge to a peak of approximately $225 per share, briefly making SpaceX the fourth-most-valuable public company, ahead of Amazon and Microsoft. Shares have now retreated to just 14% above the IPO price of $135, erasing most of the gains from the company's June 12 debut.

The recent decline comes as SpaceX confirmed its first-ever bond issuance on Monday morning, with Bloomberg reporting the offering could reach approximately $20 billion. The company stated it intends to use the net proceeds to repay the outstanding balance of a bridge loan facility secured earlier this year, which was used to finance CEO Elon Musk's acquisition of his own xAI startup in February. Major financial institutions including Bank of America, Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley are underwriting the deal and provided the original bridge financing.

Analysts point to multiple factors pressuring the stock downward. Debt offerings can raise investor concerns about interest expenses and capital needs, while the expiration of equity lock-up periods presents a more immediate threat. According to 22V Research strategist Jeff Jacobson, there is a 20% insider share unlock scheduled after SpaceX's earnings announcement in early to mid-August, with additional unlocks of 10% if the stock trades 30% above the IPO price, plus 7% unlocks around August 21 and September 10. Jacobson warned that insiders could potentially sell up to 44% of SpaceX shares by early September, which could increase the current float by approximately 900% from its post-IPO level of 4.2%.