- SpaceX shares turned positive in premarket trading Tuesday after three straight sessions of losses erased more than $600 billion in market value — Monday alone saw a 16% plunge worth ~$400 billion, the second-largest single-day loss on record behind only Nvidia’s ~$590B drop last year.
- The stock is still up roughly 10% from its $135 IPO price set during last week’s record-breaking $75 billion offering, with an average analyst price target near $227 — implying ~47% upside from Monday’s close.
- SpaceX is preparing its first-ever investment-grade bond offering, seeking to raise at least $20 billion to fund AI ambitions — unusual for a company that S&P says will burn cash through 2029.
- Separately, SpaceX signed a multibillion-dollar computing deal with AI startup Reflection AI, and Susquehanna initiated coverage with a neutral rating and $170 target.
What Happened?
SpaceX shares swung to a 1.3% gain in premarket trading Tuesday after briefly falling 3% in a broad-based tech selloff that weighed on high-momentum names. The stock had lost more than $600 billion in value over three sessions, with Monday’s 16% plunge — worth roughly $400 billion — ranking as the second-largest single-day market cap loss on record. Only Nvidia’s ~$590 billion collapse last year was bigger. Despite the rout, SpaceX remains about 10% above its $135 IPO price from last week’s record $75 billion public offering. Separately, SpaceX inked a multibillion-dollar agreement with AI startup Reflection AI for computing resources.
Why It Matters?
The volatile price action reflects broader nervousness on Wall Street about AI spending sustainability. South Korean chipmakers led a 10% crash in the Kospi on Tuesday, and Nasdaq 100 futures fell about 2.8%. SpaceX is at the intersection of two of the market’s hottest narratives — space infrastructure and AI compute — which amplifies both upside enthusiasm and downside exposure when sentiment shifts. The company’s plan to raise at least $20 billion in its first-ever investment-grade bond offering adds another layer of market scrutiny: S&P Global says SpaceX is expected to burn cash through 2029, making this an unusual high-grade debt deal.
What’s Next?
SpaceX’s $20B bond debut is the immediate near-term catalyst; investor appetite will signal confidence in the AI compute buildout thesis. Of the analyst firms tracked by Bloomberg, six recommend buying, two (including Susquehanna, which just initiated) have hold-equivalent ratings, and one has a sell. The average price target of ~$227 suggests meaningful upside from current levels if the AI narrative stabilizes. Retail investor enthusiasm has been a key force driving the stock, and whether that base holds through the bond roadshow will be closely watched.
Source: Bloomberg
