SpaceX is borrowing $20 billion right after a record IPO, and the move is raising red flags for regular investors.

• SpaceX did a record IPO but now wants to borrow $20 billion by selling bonds, even though it has over $100 billion in cash.
• Most of the loan would repay a bridge loan taken before going public; the company loses money and may not turn a profit until 2028.
• The stock spiked to around $200 after its $135 debut, then fell back to roughly $156 — so late buyers, including 401(k) and pension funds, lost money while insiders cashed out.
• The $1.75 trillion target valuation is worth more than every US defense contractor combined, despite SpaceX losing $5 billion last year.
• Tesla and SpaceX have pulled in $38 billion in government subsidies, and weakened market regulators made the fast-tracked IPO easier.

Outlook: Expect more scrutiny of the valuation and bond raise, with ordinary retirement investors most at risk if the hype unwinds.