SpaceX's $40 billion bond issue faces higher rates amid AI market jitters
SpaceX is finalising a $40 billion debt offering at interest rates above those of its existing bonds, reflecting growing anxiety in the AI financing market.
SpaceX is close to completing a $40 billion debt raise that carries rates notably higher than its present bonds, signaling heightened risk perception in the AI-linked loan market. The most junior tranche is anticipated to bear interest of about 8.3%, while a higher-quality portion secured by the firm’s chip holdings is likely to price near 7.75% when it is set next week. Apollo and Goldman Sachs are managing the transaction, which could see final pricing adjustments before completion.
Recent market moves, including CoreWeave’s bond sell-off, have amplified worries about AI-focused financing, causing SpaceX’s existing securities to weaken and its default insurance premiums to expand. The move comes as the company, reportedly weighing a merger with Tesla, confronts scrutiny over its large spending plans and overall debt load.
Why it matters
Higher borrowing costs for SpaceX highlight broader investor caution toward AI-related financing and could affect the company’s growth plans.
How this story developed
- Oct 14 Tesla unveils next-gen Roadster with demonstrable airborne capability
- Oct 14 Elon Musk said special committees at Tesla and SpaceX are examining a possible merger, a move that could create a $5 trillion conglomerate.
- Oct 16 Tesla disclosed the Roadster’s price of $200,000 and a $50,000 reservation fee.
- Oct 16 Reservation amounts may be up to $250,000 and are provisional.
- Oct 19 Elon Musk announced on X that each child in the United States will receive one SpaceX share next year, but gave no details on timing or eligibility.
- Oct 19 Musk clarified that the share distribution is planned for 2027.
- Oct 20 Musk’s recent remarks have renewed talk of a merger.
- Oct 21 Elon Musk announced that each company has formed a special committee to explore a merger.
- Oct 21 Musk disclosed the formation of the committees during SpaceX’s earnings webcast.
- Oct 21 Tesla reported Q3 revenue of $28.05 billion, beating forecasts, while vehicle deliveries rebounded and AI spending reduced earnings.
- Oct 22 The FAA said the Roadster does not meet its definition of an aircraft, sparking debate over pilot‑license requirements.
- Oct 22 Tesla disclosed that AI spending weighed on Q3 profit.
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