NEW YORK — Shares of SpaceX fell for a third consecutive trading session on Monday after the company disclosed plans to raise debt, with investors weighing the costs of its expanding artificial intelligence ambitions and other long-term projects.
The stock closed sharply lower, extending a selloff that followed an initial surge after the company's record-setting public market debut earlier this month. According to market data and company filings, the decline came after SpaceX announced plans for its first investment-grade bond offering, part of a broader effort to secure additional financing.
SpaceX said the proceeds would be used in part to refinance existing borrowing and support investments in artificial intelligence and related infrastructure. Details of the planned borrowing were disclosed in offering documents reviewed by investors. Reuters reported on Monday that concerns over rising AI-related expenditures contributed to broader weakness across major U.S. technology stocks.
The company, led by Elon Musk, has increasingly emphasized AI as a core part of its strategy. Recent announcements have included plans for major investments in computing infrastructure and an acquisition of AI coding startup Anysphere, the developer of Cursor, through an all-stock transaction.
SpaceX has said the borrowing would support growth initiatives while maintaining financial flexibility. In securities filings cited by multiple media outlets, the company indicated that part of the debt issuance could be used to repay a bridge loan associated with transactions involving its AI operations. Details remain limited regarding the full allocation of proceeds.
Investors have closely watched the stock since its June debut. After initially rising well above its offering price, shares began retreating last week as analysts and investors scrutinized the company's valuation, acquisition plans and capital requirements. Reuters reported on June 18 that the post-IPO rally had begun to lose momentum as questions emerged about future spending needs.
Market participants offered differing views on the decline. Some analysts cited concerns about dilution and borrowing needs, while others noted that the company continues to hold substantial cash reserves and remains above its initial offering price. Company representatives have not publicly indicated any change to SpaceX's strategic plans.
“The notes offering supports our long-term investment program,” the company said in offering materials referenced by financial media reports. Details of the financing package and future borrowing plans have not been fully disclosed.
As of Monday's close, SpaceX shares had recorded their third straight daily decline. The company has not announced any revisions to its AI investment plans, and the bond offering process remained ongoing.
