SpaceX stock plunges 16% as bond yield spike erases $400 billion in market cap

SpaceX, Elon Musk's aerospace and AI conglomerate, saw its market value drop by $400 billion after shares tumbled more than 16% in a single session. The sharp decline reversed much of the gains from a recent debut rally, according to reports from both FT and Hacker News.

"Shares in Elon Musk’s AI and rockets group tumble more than 16% following fresh rise in US bond yields"

The sell-off was triggered by a fresh increase in US bond yields, which typically pressures high-growth and speculative stocks. SpaceX, which combines rocket launch services with artificial intelligence ventures, had been riding a wave of investor enthusiasm since its public listing.

Hacker News noted that the $400 billion loss in market value represents one of the largest single-day drops for a major tech company this year. The decline underscores the vulnerability of even the most hyped sectors to macroeconomic shifts.

Analysts pointed to the bond yield rise as a signal that investors are rotating out of riskier assets. The move erased nearly all the gains SpaceX had made since its market debut, leaving the company's valuation back near pre-listing levels.

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

While the company's long-term prospects in space and AI remain a focus for bulls, the immediate market reaction highlights how quickly sentiment can shift when interest rate expectations change. SpaceX has not commented on the stock movement.