Elon commenting on $CRWV's debt getting smoked in secondary markets today, g-spreads up to 1000bps. Bond investors demanding higher returns to hold $CRWV paper = higher perceived default risk. Musk highlights the first of 3 contributing factors. 1/ Execution Risk CAPEX always leads revenue generation. Can $CRWV bring capacity online in time to service associated and pre-existing debt? $CRWV is a colo-first operator that is dipping its toes into greenfield sites now in an attempt to escape margin purgatory. Elon likely highlighting the additional execution risk that comes with taking on more of the development process. 2/ Leverage More debt = less room for error. $CRWV has ~ $36B in debt as of Q2. Existing leverage magnifies the consequences of missing on execution. $CRWV annualized Q2 financing costs alone were $2.56B. 3/ Refinancing Risk When old debt matures, it needs to be repaid or rolled over. Widening credit spreads = refinancing is also now more expensive. $CRWV has $4.4B in scheduled principal repayments in H2 2026 alone. Another $6.2B in 2027. There's a bit of a self-reinforcing doom loop here. Wider credit spreads → More expensive refinancing → Higher debt-service burden → Greater refinancing/default risk → Even wider credit spreads. TLDR: $CRWV deserves a lot of credit for pioneering asset-backed financing in AI infrastructure. But it made its bed, and now it must lay in it. And not all corporate finance strategies are made the same. There's such a thing as excessive leverage, especially when paired with structurally weaker ROIC from a colo-first business model and a less competitive platform for higher-margin managed inference. At the same time, the market seems to believe there is a mismatch between $CRWV's appetite for leverage (and associated financing costs) and its execution speed to bring online the contracted capacity and generate the necessary cashflows to service that debt, all while existing financing costs continue to accumulate. Leverage only amplifies returns when the underlying economics justify it. Otherwise it amplifies losses and 🐷 get slaughtered.