SpaceX bond worth 10% less than issue price – heading for junk bond status

ft.com

July 15, 2026

3 min read

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69/100

Summary

SpaceX's stock has declined by 38% from its peak post-IPO valuation. The company's market cap previously surpassed that of Amazon and Microsoft.

Key Takeaways

SpaceX's 2056 bonds have seen their yield spread widen from an initial 175 basis points to 231 basis points over similar maturity US Treasuries.
The value of SpaceX's 2056 bonds has decreased significantly, with a $100 million allocation dropping to $90.7 million in less than a month.
SpaceX bonds are currently the worst-performing US dollar triple-B benchmark bond, according to the ICE BofA indices.
The market is pricing SpaceX and Oracle bonds similarly, indicating a perception of junk risk associated with both companies.

Coverage & discussions

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Analysis ready

Community Sentiment

Negative

Concerns

Investors are blindly sinking their life savings into Elon Musk's promises, which have repeatedly fallen flat — from Optimus robots to autonomous driving, skepticism is rampant.
The bond's drop in value right after issue screams trouble; it's a stark indicator of how investors view SpaceX's future, raising serious operational risk concerns.
Changing Nasdaq rules to fast-track SpaceX's inclusion feels like a manipulation of standards, leading to premature investments before the stock can find its true value.
With SpaceX's bond rated junk, it highlights a troubling reality: the company is in a capital-intensive business facing high costs of borrowing, making future fundraising precarious.