The pull back in Space Exploration Technologies Corp shares was primarily driven by growing nervousness among fixed-income and equity investors regarding the company’s aggressive borrowing plans. Reports that the company is seeking to raise significant debt financing through bank loans and investment-grade bonds to acquire advanced artificial intelligence hardware from Nvidia sparked immediate balance sheet concerns. Credit default swap spreads for the company rose to record levels, underscoring debt market anxiety over the scale of liabilities being added to fund its expanding AI compute infrastructure and Starlink operations.

The negative sentiment also reflects heightened sensitivity around the stock’s elevated valuation relative to…