SpaceX’s debut rally collapsed Monday, wiping out $400 bn in market value as the rocket maker’s shares fell 16.4% to $154.60. The drop left the company 31.5% below the $86 bn IPO peak it reached on June 11, when shares opened at $135. Market sentiment shifted sharply after the US Treasury bond market pushed yields higher. This slide follows a sharp rally that saw the stock soar 30% within days.

Higher Treasury yields have rattled tech valuations, especially for SpaceX, which trades at more than 100 times last year’s revenue. Investors reacted to Fed signals that rates may rise soon, with the two‑year yield climbing to 4.23%—the highest in over a year. The decline also pressured other big‑tech names, dragging the Nasdaq Composite down 1.3%. Investors now weigh the cost of higher borrowing.

SpaceX plans a $20 bn bond sale to repay a bridge loan tied to its AI unit, x AI, and social‑media platform X. The company’s lofty valuation hinges on an estimated $26.5 tn AI market, despite a $6.4 bn loss last year. With shares now below the IPO high, investors face a stark reassessment of the rocket‑maker’s growth prospects, highlighting the fragility of its revenue model.