SpaceX's debut US bond sale has drawn approximately $89 billion in demand, sources tell Bloomberg, far exceeding the $20 billion to $25 billion the company is aiming to raise. The oversubscription highlights strong investor confidence in the aerospace firm, even as it faces a reported $600 billion loss in value over three days.
This marks SpaceX's first foray into the US bond market, a notable shift for a company historically funded through equity and private rounds. The massive demand suggests that institutional investors see the firm as a compelling credit risk, despite its capital-intensive operations and ambitions like Starship development and Starlink expansion.
SpaceX is targeting between $20 billion and $25 billion in the offering, with the exact terms still under negotiation. The $89 billion in orders represents more than three times the upper end of that range, indicating that pricing could be favorable for the company.
The bond sale comes as SpaceX navigates a volatile period, with its valuation reportedly swinging by hundreds of billions according to some metrics. Proceeds are likely to fund ongoing projects, including the Starship rocket program and Starlink's global satellite internet rollout.
Some analysts caution that the valuation swing—$600 billion lost in three days—may reflect market jitters about SpaceX's high-risk profile. The company's private valuation remains opaque, and the bond market's appetite could shift if broader economic conditions deteriorate.