NEW YORK — Shares of SpaceX fell this week, reducing the company’s market value after a rise in U.S. bond yields prompted investors to reassess valuations of high-growth technology and aerospace firms, according to market reports and investor filings. The decline followed the company’s announcement of its first bond offering since becoming a publicly traded company earlier this month.
SpaceX shares dropped more than 16% during a recent three-day period, erasing hundreds of billions of dollars in market capitalization from levels reached shortly after its June public listing, according to market data cited by several financial publications. The company’s valuation, which had briefly surged following its initial public offering, retreated as Treasury yields moved higher and investors shifted away from some of the market’s most richly valued growth stocks.
The stock’s decline coincided with SpaceX’s launch of an inaugural bond sale. The company initially sought to raise about $20 billion through senior unsecured notes and later expanded the offering to approximately $25 billion after strong investor demand, according to company disclosures and financial media reports. Proceeds are expected to be used primarily to refinance existing debt and for general corporate purposes.
Investors and analysts cited rising borrowing costs as a factor weighing on sentiment. Higher bond yields can reduce the appeal of companies whose valuations are tied heavily to expectations of future growth, market participants said. Reports also noted that some investors questioned the need for additional borrowing so soon after SpaceX’s record-setting public offering.
Despite the stock decline, demand for the bond offering remained strong. According to reports, investor orders significantly exceeded the amount of debt being sold. “The sale drew nearly $90 billion in orders,” Investors Business Daily reported, citing market data on the transaction.
The recent share-price weakness has also affected the personal wealth of SpaceX Chief Executive Elon Musk, whose net worth is closely tied to the company’s stock performance. Financial publications reported that declines in SpaceX and other holdings reduced his wealth from recent peak levels.
As of Thursday, SpaceX shares remained above their IPO price but well below the highs reached in the days immediately following the listing. The company had not publicly announced any change to its operating plans, and details regarding future fundraising activity remained unclear.
