[elbasti]

This is incorrect. SpaceX has a trillion in Market Capitalization, not a trillion in Equity. These two concepts are no the same. The equity value is the theoretical intrinsic "worth" of a company, and has a very simple definition: Equity = Assets - Liabilities.

Market capitalization takes into account the future value of the business, while equity (an accounting concept) only looks at present day cash & liabilities.

When a company gets liquidated, the future growth/value of the business is, pretty obviously, zero, so the "market cap" is irrelevant. What matters is what is left over once all debts are liquidated.

SpaceX's equity at the time of their IPO was $34 Billion (it's in the S1!). You can also see in their S1 that their cash decreases by about $8B a year, so unless things change they should be underwater in about 4 years.

[Havoc]

By „equity buffer“ I don’t mean equity in the balance sheet sense you seem think.

In this case the gap between the value bond market and equity markets assign to spacex is equal to market cap ie a trillion.

If equity markets are right there is a trillion of spare equity buffer ( ie equity in the enterprise value sense not accounting equity) before endangering bonds and the bond people are idiots for marking their bonds down. If bond market is right equity is worthless and equity people are silly to push it to a trillion market cap.

Either way someone is wrong by a trillion.