SpaceX sheds $400bn in market value as debut rally hits reverse

{"text":[[{"start":9.95,"text":"Elon Musk’s SpaceX shed $400bn in market value on Monday in a fresh bout of volatility for the rockets and AI company following its record-breaking Wall Street debut. "}],[{"start":21.299999999999997,"text":"SpaceX shares ended Monday down 16.4 per cent at $154.60, leaving them 31.5 per cent below the high struck after the group’s $86bn initial public offering on June 11. The shares were listed at $135. "}],[{"start":38.699999999999996,"text":"The sharp reversal in SpaceX shares comes as US government bond yields have risen sharply on expectations the Federal Reserve will need to raise interest rates in the coming months to tame inflation. Higher yields on ultra-low-risk Treasuries are caustic for richly valued tech groups such as SpaceX, which trades at more than 100 times its revenue last year."}],[{"start":60.099999999999994,"text":"The $400bn hit to SpaceX’s market capitalisation on Monday ranks as the second-biggest one-day loss suffered by any company, according to FT analysis of Bloomberg data. SpaceX ended the session with a market cap of $2.03tn, down from an intraday peak of almost $3tn on June 16. "}],[{"start":null,"text":"

"}],[{"start":81.69999999999999,"text":"“Everyone who wanted to buy [SpaceX] bought in the first few days, and it looks like basically they’re done,” said Mike O’Rourke at Jones Trading."}],[{"start":91.19999999999999,"text":"The broader tech sector was also hit on Monday, with the Nasdaq Composite down 1.3 per cent. Big tech stocks including Google, Amazon and Broadcom fell more than 4 per cent. "}],[{"start":104.24999999999999,"text":"Fed chair Kevin Warsh last week vowed to quell the surge of inflation triggered by President Donald Trump’s Iran war, while his colleagues at the US central bank delivered an unexpectedly hawkish slate of projections. Nine of 18 Fed officials who submitted estimates expect higher rates by the end of this year. No members expected a rate rise as recently as March."}],[{"start":125.85,"text":"Markets are now betting that the central bank will raise rates as soon as September, according to trading on Monday in federal funds futures. "}],[{"start":135,"text":"Two-year Treasury yields, which are particularly sensitive to monetary policy expectations, climbed 0.05 percentage points on Monday to 4.23 per cent, the highest level in more than a year. "}],[{"start":null,"text":""}],[{"start":147.5,"text":"Higher rates also push up the price of issuing debt. SpaceX is planning to raise as much as $20bn in a bond sale as soon as this week to pay back a $20bn bridge loan taken out in March when Musk merged his debt-laden AI start-up, xAI, and social media platform X into the rocket company."}],[{"start":167.65,"text":"SpaceX’s massive valuation rests on an assumption that its AI division — which made a loss of $6.4bn in 2025 — has a total addressable market of $26.5tn."}],[{"start":180.5,"text":"On Monday, SpaceX agreed to provide computing resources at its Colossus 2 data centre to start-up Reflection AI, the latest in a series of deals that Musk has struck with other groups engaged in the AI investment boom. "}],[{"start":194.3,"text":"SpaceX agreed similar deals with Anthropic and Google-parent Alphabet in May and early June, respectively, mimicking the business model of CoreWeave, which leases computing capacity to tech companies building AI models of their own."}],[{"start":208.85000000000002,"text":"Grok, the chatbot offered by xAI has so far proved less popular than OpenAI’s ChatGPT, Google’s Gemini and Anthropic’s Claude."}],[{"start":225.85000000000002,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1782173138_2424.mp3"}