What Happened

According to The Wall Street Journal, reported by Gizmodo on July 28, 2026, The Boring Company — Elon Musk's tunneling startup spun out of SpaceX in 2018 — is in talks to raise approximately $4 billion in a new funding round at a valuation of roughly $20 billion.

The timing is uncomfortable. SpaceX, which went public on June 12, 2026, at $150 per share, has seen its stock crater to a record low of $113.50 as of Monday's close — a 24% drop from the IPO price and a 50% decline from the all-time high of $225.64 reached just four days after listing. SpaceX's market capitalization has fallen from approximately $3 trillion at peak to around $1.5 trillion, shedding more value than Tesla's entire ~$1.2 trillion market cap in a matter of weeks.

The Boring Company's commercial track record remains thin. Its primary completed project is the Vegas Loop, an underground Tesla-based transit system in Las Vegas. Proposed projects in Nashville and Dubai are in progress, while previously announced tunnels in Baltimore and Chicago have not materialized.

Why It Matters

The core signal here is about capital flow in the Musk ecosystem during a period of public-market stress. Private investors have historically treated Musk ventures as relatively safe bets — even Twitter investors who were underwater for months eventually profited when xAI acquired the platform, and SpaceX subsequently acquired xAI. But SpaceX's post-IPO decline is testing that thesis in real time.

Two upcoming catalysts add risk: SpaceX reports its first quarterly earnings as a public company next week, and on August 6, up to 20% of certain investors' locked-up shares become eligible for sale. A disappointing earnings report combined with share unlocks could accelerate the decline.

For the broader market, SpaceX's IPO was partly pitched on a $28.5 trillion total addressable market, with $26.5 trillion expected from AI alone. If public markets continue to push back on that AI-driven valuation thesis — amid a broader tech selloff over capex concerns — it could pressure AI infrastructure valuations more broadly.

Who Is Affected

• Musk-ecosystem investors: Direct exposure to SpaceX's earnings volatility and The Boring Company's funding terms.
• AI infrastructure operators: The capex-selloff narrative driving SpaceX's decline is the same one affecting data center and GPU cloud valuations. Crusoe's recent $3B raise at $30B (covered by MasterNodeAI on July 4) occurred in a more favorable window.
• Urban mobility and construction firms: The Boring Company's expansion remains uncertain; competitors should not assume its proposed projects will proceed.

Strategic Implications

AI startup founder

If you're raising capital in the next 60 days, treat SpaceX's earnings next week as a market signal. A miss could tighten late-stage funding appetite across AI-adjacent infrastructure, not just Musk companies. Time your outreach accordingly.

Developer/operator building with AI APIs

Limited direct impact, but the SpaceX AI TAM thesis ($26.5T from AI) is being stress-tested by public markets. If that narrative weakens, expect investors to push harder on AI API unit economics — which could eventually affect pricing and product roadmaps from API providers.

Non-technical business owner evaluating AI tools

No immediate impact on tool selection. However, if the broader AI capex selloff accelerates after SpaceX earnings, some AI vendors may slow feature releases or adjust pricing. Keep an eye on vendor stability through Q3.

What to Watch Next

Monitor SpaceX's first quarterly earnings report next week and the August 6 share unlock. A significant miss could ripple into AI infrastructure funding and Musk-affiliated company valuations. Also watch for confirmation of The Boring Company's $4B raise terms — if the round closes at the reported $20B valuation despite SpaceX's decline, it signals private-market demand for Musk ventures remains resilient.

Frequently Asked Questions

Q: How much is The Boring Company trying to raise and at what valuation?

A: The Boring Company is reportedly in talks to raise approximately $4 billion at a valuation of around $20 billion, according to The Wall Street Journal as reported by Gizmodo on July 28, 2026.

Q: Why has SpaceX's stock dropped since its IPO?

A: SpaceX shares have fallen to a record low of $113.50, down 24% from the $150 IPO price, amid a broader tech selloff driven by concerns about AI capital expenditures. The company's first quarterly earnings report as a public company is expected next week, which could further impact the stock price.