Wall Street shaken by SpaceX crash, panic among investors as soon as ‘CCC’ rating was received; 50 lakh crore drowned

Elon Musk: The shares of Elon Musk’s company SpaceX have been falling for the last three consecutive days. On Monday also the company’s shares crashed by 16.4% and closed at $154.60. Due to this huge selling of shares, the company has suffered a loss of 600 billion dollars (about 50 lakh crores) in just three days. After touching its all-time high ($201.80) on July 16, the stock has fallen 31.5% from its peak.

Why are SpaceX shares falling?

According to Bloomberg report, the company’s new bond sale plan is considered to be the biggest reason for the decline in its shares. SpaceX said that to fund its big projects related to Artificial Intelligence (AI) and space, it is going to raise debt of more than 20 billion dollars by selling bonds.

Due to this huge borrowing by the company for investment in business, investors got scared thinking that the debt burden on the company would increase significantly. Meanwhile, rating agency MSCI has given the company its lowest rating of ‘CCC’ considering its corporate governance and environmental risks. Due to this, rapid selling of shares started.

Stampede in Wall Street

Yesterday, after SpaceX got CCC rating, not only the company’s shares fell, but an atmosphere of ‘panic selling’ was created in the entire tech sector. Big hedge funds started selling up to 4.5-5% in tech firms like Alphabet and Meta. Due to this the Nasdaq index crashed badly.

Company owner Elon Musk has also received a big blow from this. In just one day, 152 billion dollars (about Rs 12.5 lakh crore) decreased from his total wealth. However, despite such a huge decline, Musk still remains the world’s only trillionaire and the richest person with $1.1 trillion.

Also read:

Share Market: Today the market fell as soon as it opened, Sensex fell below 77000; Nifty also became weak