SpaceX (SPCX) Is Down 31% From Its High and Is Now Borrowing $25 Billion. Should Investors Be Worried?

SPCX has dropped 31% from its post-IPO peak of $225 to $154 and is now tapping debt markets for $25 billion despite raising $85.7 billion in equity since its June public offering. The move comes as the space company carries a $2 trillion valuation—a price-to-sales ratio of 77—while remaining unprofitable.

The Motley Fool flags the borrowing as a red flag for a company already sitting on massive capital reserves. SpaceX is burning cash on AI infrastructure investments and capital-intensive launch operations, raising questions about whether the IPO proceeds are being deployed efficiently or simply burned through faster than expected.

The valuation metrics paint a stark picture: at 77 times sales without earnings, SPCX trades at a premium typically reserved for high-growth software companies, not capital-intensive aerospace firms. The $25 billion debt raise suggests either aggressive expansion plans or cash flow pressure that equity alone won't cover.