SpaceX shares suffered their steepest decline since going public, dropping 16% to $154.60 on Monday.
The selloff marks the third consecutive day of losses, pushing the stock to its lowest level since its first day of trading on the Nasdaq.
The sharp repricing follows reports that the aerospace and artificial intelligence company requires an immediate round of fresh capital.
Investors are increasingly anxious about the prospect of a significant debt offering, which complicates the narrative surrounding the company's highly anticipated public debut scheduled for this Friday.
Handelsblatt identified several factors driving the market's negative reaction, highlighting the tension between SpaceX's growth ambitions and its current funding requirements.
The news of a looming capital raise has overshadowed the broader tech rally, with other technology stocks also facing pressure in the session.