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SpaceX shares drop after AI spending surge detailed in first earnings
Quarterly revenue nearly doubled to $7.8bn, but spending rose to $18.3bn, with AI accounting for most of the increase.
SpaceX shares fell nearly 9% in after-hours trading after the company’s first earnings report as a publicly traded firm showed a sharp rise in artificial intelligence spending, which spooked investors. According to BBC Business, SpaceX reported quarterly revenue that nearly doubled to $7.8bn from a year earlier, while spending ballooned to $18.3bn, more than six times the prior year level, with most of the increase tied to AI. The company, which builds rockets and Starlink internet satellites and also owns the social media platform X, posted a net loss of $143m in the three months to June. It also reported a $2bn loss for the first six months of the year. Musk said people were underestimating SpaceX, pointing to Starlink as the currently profitable segment, with $1.6bn in second-quarter revenue, and he discussed plans for Starlink growth and an expansion of compute power used for AI projects. SpaceX’s space segment posted a $542m net loss against $962m in revenue for the second quarter, and management said capital spending would stay at a “very similar” level for the rest of the year, as the company’s stock slid despite Musk’s optimism about reaching $1tn in revenue by 2030.