SpaceX bonds fall days after company raises $25bn in new debt

In short: SpaceX’s bonds fell in price only days after the company raised $25bn, and investors demanded higher interest rates to hold its debt.

What's going on

SpaceX’s bonds sold off on Friday, meaning their prices dropped in the market. When a bond price falls, its yield rises, which is the effective interest rate investors earn.

The yield on SpaceX’s 10-year debt rose to almost 6%. The extra return investors demanded compared with US Treasury bonds, often called the “spread” (think of it as a risk surcharge), moved above 1.6 percentage points. MarketAxess data showed SpaceX was among the worst performers in the high-grade bond market that day.

This matters because SpaceX’s bond levels began to look closer to those of “junk-rated” borrowers. Junk-rated usually means higher risk, so lenders expect higher interest. SpaceX is still rated investment-grade by major credit rating agencies, but it paid a higher borrowing cost than other similarly rated companies when it sold the bonds earlier in the week.

Investors also pointed to business fundamentals. The Financial Times reported SpaceX had a net loss of $4.9bn on revenues of $18.7bn in 2025. Some analysts said bond investors tend to focus more on current cash coming in, rather than big future projections.

Longer-dated SpaceX bonds faced even more pressure. Bonds maturing in 2046 and 2056 traded at higher spreads than when they were first issued, according to MarketAxess.

What to watch

A key question is whether SpaceX can keep borrowing cheaply while it is still losing money and while so much of its value is tied to Elon Musk’s leadership. Investors will also watch whether the company outlines a clearer long-term leadership plan, since bonds that mature decades from now depend on the company being stable for a long time.

Source: Financial Times