While Wall Street was still in a state of disbelief late last week that Elon Musk had made a flying Tesla (TSLA) Roadster, his SpaceX (SPCX) team posted a not-so-small note on its investor relations page.
SpaceX results will be released on October 20 after the market close. The announcement came as a surprise to many on the Street, as it is common for results release dates to be shared weeks in advance.
But there may be several reasons behind SpaceX’s rushed earnings date.
“Possible explanations include a desire to release updated financials ahead of new financing deals or to share urgent operational/strategic updates – either ahead of quid pro quos or to give the market time to digest the implications ahead of large lock-up releases (1.30 billion shares two days after earnings, 329 million on 10/24 and the group’s remaining 857 million 180 days thereafter). Or the explanation could be as mundane as calendar – it’s just hard to know,” said Evercore ISI analyst Kutgun Maral.
The new funding round appears to be the most likely reason, followed closely by lockup releases.
Reuters recently reported that SpaceX was seeking to raise $40 billion in funding to purchase advanced AI chips from Nvidia (NVDA).
The proposed package would include about $10 billion in bank loans and $30 billion in investment-grade debt.
Apollo Global Management (APO) is expected to help lead the financing with PIMCO among the potential participants. (Disclosure: Yahoo is a holding company for funds managed by affiliates of Apollo Global Management.)
The deal would underline Musk’s ambitions to make SpaceX a major player in AI computing, which will require significant new capital.
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At 10:06:49 a.m. EDT. Open market.
Brian Sozzi is the editor-in-chief of Yahoo Finance, host of the Sozzi unleashed the morning show and Power Actors with Brian Sozzi podcast and member of the Yahoo Finance editorial leadership team. Follow Sozzi on @BrianSozzi, InstagramAnd LinkedIn. Any advice on stories? Email brian.sozzi@yahoofinance.com.
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