SPCX Slides Overnight: SpaceX’s $40B Chip Financing Reportedly Hits Market — Texas Senator Says Democrats Will ‘Go After Elon Musk’

• The package includes an $8.3 billion senior-secured loan and bond tranches, helping fund $47.3 billion of Nvidia equipment.
• Chip deliveries and leases are expected to begin in early 2027, with SpaceX owing $40 billion in principal plus interest and expenses.
• Texas Republican U.S. Sen.Ted Cruz warned Democrats could use congressional subpoenas to target Elon Musk and other Trump-aligned executives.

Shares of Space Exploration Technologies Corp. (SPCX) slid over 2% overnight late Wednesday as Goldman Sachs and Apollo Global Management reportedly sought buyers for portions of its $40 billion chip financing, while Democrats’ election victory fueled warnings of greater scrutiny of Elon Musk and his businesses.

SPCX stock fell nearly 4% on Wednesday to $135.92, with shares still tracking nearly a 1% gain so far this week. 

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Wall Street Pitches $500M Slices Of SpaceX Debt

Investors are being offered slices of SpaceX’s $40 billion chip financing worth up to $500 million ahead of the formal sale process, as concerns over AI spending and potential political scrutiny cloud the sector’s outlook, Bloomberg noted.

The package, announced in October, secured investor commitments before pricing was finalized, leaving lenders exposed to market swings as they seek buyers. It reportedly includes an $8.3 billion senior-secured loan for banks and several bond tranches for asset managers. Together with a $7 billion lease prepayment, the financing would cover about $47.3 billion of Nvidia equipment, including its next-generation Rubin chips.

SpaceX’s AI Buildout Comes With A $40B Bill

SpaceX signed a binding commitment in October for an Apollo-managed entity to buy computing equipment and lease it to the company. The agreement is expected to be finalized before year-end, with deliveries and leases beginning in the first half of 2027.

Each equipment batch would carry a lease lasting roughly five to five-and-a-quarter years. SpaceX expects to pay about $40 billion in principal, plus interest and other expenses. Called as the largest committed GPU financing, the deal would expand computing capacity for Grok and cloud customers. Several major investment firms have also committed funding.

The chips would reportedly be owned by a separate financing vehicle that issues the debt, helping protect SpaceX’s corporate credit ratings. SpaceX would still have to pay rent if the equipment is damaged or unforeseen events disrupt operations.

“Rent is owed regardless of equipment condition, casualty or force majeure, providing investors with a clean look-through to SpaceX credit,” an investor presentation reportedly stated.

Republicans Warn Musk Faces Political Heat

The financing push comes as Republicans warn that Democratic control of Congress could bring greater scrutiny of Musk and other business leaders who worked with President Donald Trump.

U.S. Sen.Ted Cruz, a Republican from Texas, warned during the All-In podcast’s election-night coverage that Musk could face congressional subpoenas. “I will say also, look, the Democrats have already foreshadowed that if they have one or both houses, they're going to use subpoenas to go after business executives who've worked with the president, to go after Elon Musk,” Cruz said.

“They've already declared they intend to engage in lawfare and in open attacks,” he added. Cruz also warned of growing opposition to AI and data centers, saying that slowing construction could damage the economy. 

Florida Gov. Ron DeSantis, a Republican, separately warned that Texas’ incoming Democratic attorney general could target Musk, raising concerns over Tesla’s Gigafactory near Austin. “They’re going to go after Elon Musk. I guarantee you they will do that,” DeSantis said at a Wednesday press conference. He warned that political hostility could complicate Musk’s business operations in Texas.

Texas Attorney General-elect Nathan Johnson, a Democratic state senator, defeated Republican state Sen.Mayes Middleton to become the first Democrat elected to the office since 1994.

How Do Retail Traders Feel About SPCX?

On Stocktwits, retail sentiment for SPCX improved to ‘neutral’ from ‘bearish’ levels a day ago amid a 310% jump in 24-hour message volumes.

One user said, “$SPCX everyone thinks spacex is going under after this mid term.  That is your opportunity, Wall Street has revenue at 180 billion in 2027. Elon can’t get to 500-1 trillion. That isn’t priced in”

Another user said, “Democrats will probably make things difficult for Elon, that's for sure. He's likely to be one of their main targets, especially given how much Elon has helped Trump and his Republican buddies during election. SELL SELL SELL!!!!”

SPCX stock has declined 16% year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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