The SpaceX Sell-Off May Be More Than a Market Overreaction

SpaceX's 31.5% stock decline following its record $85 billion IPO reflects fundamental concerns beyond market overreaction. The company is pivoting from aerospace to AI infrastructure, issuing $20 billion in unsecured debt shortly after the IPO, acquiring Anysphere for $60 billion, and diluting shareholder value. Meanwhile, core Starlink margins are compressing as the company expands into emerging markets. With a 71X enterprise value to EBITDA multiple and projected net debt reaching $400 billion by 2031, SpaceX faces significant execution risks.