SpaceX shares slide for second day as post-IPO volatility tests investor confidence

SpaceX is demonstrating that even the biggest initial public offering in history is not shielded from the sharp swings that often accompany newly listed companies.

Shares of Elon Musk's aerospace, satellite and artificial intelligence firm declined for a second consecutive session on Thursday, falling as much as 10% during intraday trading after losing nearly 5% a day earlier. Despite the recent pullback, the stock remains on course to finish its first full week as a publicly traded company roughly 28% above its IPO price of $135 per share.

Early enthusiasm among retail investors appears to be cooling. According to data from Vanda Research, individual investors who had been consistent buyers of SpaceX stock during its first few trading days significantly reduced their activity on Wednesday. Net flows remained largely unchanged through most of the session before ending with a modest net purchase of $2.3 million at the close.

The trend appeared to continue on Thursday. During the opening minutes of trading, retail investors recorded net sales of approximately $3.5 million worth of SpaceX shares before activity stabilized and buying interest gradually returned.

At 1:10 p.m. EDT, SpaceX shares were trading down 8.02%, or $15.38, at $176.44.

Market analysts believe heightened volatility could persist in the near term as investors attempt to balance the company's massive growth potential against questions surrounding future earnings and execution. While expectations for revenue expansion remain high, some investors are seeking greater clarity on how quickly SpaceX can translate its ambitious projects into sustained financial growth.

Inclusion in Nasdaq 100

Despite the recent weakness, the stock could receive a boost from upcoming index inclusions. SpaceX is expected to become eligible for inclusion in the Nasdaq 100 after just 15 trading days, following a rule change by Nasdaq Inc. that allows large-cap IPOs to enter major indexes more quickly.

Other index providers, including FTSE Russell and MSCI Inc., have introduced similar provisions that could accelerate the addition of newly listed megacap companies to their benchmarks. Such inclusions often generate additional demand from index-tracking funds and institutional investors.

Meanwhile, broader US equity markets traded higher on Thursday. The S&P 500 advanced 1%, while the Dow Jones Industrial Average gained 0.3%. The technology-heavy Nasdaq Composite outperformed, rising 1.4% as investors returned to growth-oriented stocks.

Although SpaceX's market debut has been marked by notable volatility, the company continues to trade well above its offering price, underscoring the strong investor interest surrounding one of the most closely watched public listings in recent years.

SpaceX eyes $20 billion bond sale after record IPO

Bankers working with SpaceX are preparing to begin discussions with investors as early as next week regarding a potential bond offering that could follow closely on the heels of the company's record-breaking initial public offering, according to a Bloomberg report.

The proposed bond issuance is expected to raise at least $20 billion, with investor calls likely to begin on Monday as the company gauges market appetite for the offering.

Elon Musk's space, satellite and artificial intelligence giant is reportedly planning to enter the investment-grade bond market for the first time through a US dollar-denominated debt sale. The move would mark another major financing milestone for the company following its historic stock market debut.

Funds raised through the offering are expected to be used primarily to refinance a temporary bridge loan worth $20 billion. The loan is scheduled to mature in September 2027 and currently represents a significant portion of the company's outstanding borrowings.

According to documents filed with the US Securities and Exchange Commission in connection with its IPO, the bridge facility accounts for the majority of SpaceX's $29.1 billion in long-term debt as of March 31.