SpaceX bond selloff after $25B debt raise tests investors

SpaceX’s $25 billion debt deal triggered a sell-off in its bonds, with 10-year yields rising toward 6% and spreads over Treasuries widening to about 1.6 percentage points, pushing some long-dated issues closer to junk levels despite an investment-grade rating. Long maturities 2046 and 2056 showed larger spreads (about 1.93 and 2.01 points). The move underscores investor concerns about SpaceX’s cash flows, after a 2025 loss of $4.9 billion on $18.7 billion in revenue, even as an IPO this month valued the company near $1.78 trillion on AI-growth expectations. Analysts caution bond investors focus on cash flow over equity upside and flag governance/succession concerns, with some noting the scenario as indicative of bubble territory.