In 4 Months, SpaceX Has Now Sought to Raise Over $150 Billion. Should Investors Be Worried or Is This a Flashing Buy Signal?

In recent days, Space Exploration Technologies Corp (NASDAQ:SPCX) stock has hit its highest level since its initial public offering in June, and the company isn't sitting idle.

The Financial Times reported that SpaceX is seeking to raise another $40 billion of debt, $10 billion through bank loans and $30 billion in investment-grade debt. The purpose of the debt is to purchase chips from Nvidia, which SpaceX plans to use in its data centers.

The news is staggering because, on top of SpaceX's nearly $86 billion initial public offering, the company raised another $25 billion of debt just a few weeks later. If successful with the new $40 billion raise, that would bring total capital raised to over $150 billion in just four months.

Most companies will never reach a market cap of $150 billion, let alone raise this much capital. Should investors be worried, or is this a screaming buy signal?

Image source: The Motley Fool.

Feeding the most capital-intensive business ever

Given that SpaceX plans to build data centers in space, a massive terafab facility, and potentially mine asteroids, it's no surprise that it would be running an extraordinarily capital-intensive business. After all, the company had nearly $18.4 billion of capex in the second quarter alone.

Even within its more grounded businesses, SpaceX is wildly ambitious.

On the company's second-quarter earnings call, SpaceX CEO Elon Musk told analysts that he thinks the company can expand its terrestrial data center compute power from 1.4 gigawatts (GW) at the end of last quarter to 7.5-10 GW by the end of 2027.

While SpaceX has demonstrated agility in building out data centers and getting them online, that would be a herculean effort, given that Amazon, the leader in total compute, has 10.6 GW, according to Jefferies.

But the new potential debt raise aligns with warnings from Wall Street analysts that the company plans to spend heavily and will therefore need to continually raise capital.

Analysts at Evercore ISI project SpaceX's capex will reach nearly $53 billion in the second half of 2026, after spending about $28.5 billion in the first half.

A warning sign or buy signal?

In a research note in late August, Morgan Stanley analyst Adam Jonas wrote that SpaceX will likely need to issue an average of $80 billion in debt each year through 2035.

"... How are they funding this?" Jonas wrote in a client note on Wednesday. "Large capex numbers are easy to announce on paper, but the growth needs to materialize for SpaceX and the debt markets to continue to justify it."

If bond yields continue to rise, raising funding could also become more challenging. If SpaceX can grow EBITDA as fast as some analysts think, it can likely justify continuing to take on massive debt.

SpaceX has generated adjusted EBITDA of roughly $4.6 billion through the first half of 2026. But many analysts do expect this number to increase significantly to over $100 billion by 2028, although there is a wide range of estimates among analysts.

Ultimately, I don't see the recent massive debt raise as a significant buy signal. It may not be a bad sign, either, but at this point, to get interested in SpaceX at its current valuation, I need to see the company actually growing revenue and EBITDA quickly.

SpaceX has made many big promises, but it's still too early to know whether they will come to fruition.

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Jefferies Financial Group, and Nvidia. The Motley Fool has a disclosure policy.