SpaceX shares fall 11% after AI spending overshadows earnings

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SpaceX shares fall 11%

Highlights

SpaceX shares fell 11.41% before the opening.
Quarterly capital spending reached $18.4 billion.
Revenue beat forecasts but failed to calm investors.
Insider selling could add pressure this week.

The stock traded at $111.03 in premarket trading, down 11.41%, according to the latest market data. The selloff followed the company's second-quarter capital expenditures of $18.4 billion, a substantial portion of which was allocated to artificial intelligence computing infrastructure. Despite the increased spending, the company's first earnings report as a public company exceeded market expectations, CNBC reported.

AI investment dominates the quarter

SpaceX reported quarterly revenue of $7.8 billion, up roughly 90% from a year earlier and above Wall Street forecasts. Its net loss narrowed to $541 million, or 9 cents a share, also better than analysts had expected.

Investors instead focused on the rapid expansion of infrastructure supporting artificial intelligence models and cloud services. SpaceX is using Nvidia chips to build computing capacity that can be rented to outside customers, placing the company in competition with established cloud providers.

Management maintained that the spending can generate fast returns and said the company has been disciplined in deploying capital. The market response showed that investors remain unconvinced about whether demand will grow quickly enough to offset the scale of the upfront investment.

Revenue ambitions meet cost concerns

SpaceX also brought forward its forecast for reaching $1 trillion in annual revenue to 2030, one year earlier than previously projected. The target depends partly on the company becoming a significant supplier of AI computing capacity alongside its rocket-launch and Starlink businesses.

That ambition has raised questions about how SpaceX will finance continued expansion before the new infrastructure produces consistent profits. Analysts expect elevated investment to continue, while some forecasts suggest positive free cash flow may remain years away.

The SpaceX stock closed Tuesday at $125.33, still below its $135 IPO price and far below the peak above $200 reached shortly after its listing. Wednesday's premarket decline pushed the shares close to $111.

Lock-up expiration brings another test

Investor attention is now turning to the expiration of insider lock-up restrictions on Thursday. The event will allow early shareholders and employees to sell eligible holdings, potentially increasing the supply of shares available to the market.

The selloff illustrates a broader change in market expectations toward AI investment. Investors are no longer rewarding spending plans on their own and increasingly want evidence that costly infrastructure can generate revenue, cash flow, and acceptable returns.

For SpaceX, future earnings will need to show that its AI business can scale without weakening the financial contribution from Starlink and its launch operations.

As we previously reported, SpaceX keeps its Bitcoin despite a $540 million drop in value.

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