SpaceX Beats Loss Forecast as Heavy AI Spending Concerns Investors
SpaceX reported a narrower-than-expected quarterly loss and strong revenue growth in its first financial results since becoming a publicly traded company, although its rapidly expanding artificial intelligence investments unsettled investors.
The Elon Musk-led company posted a loss of 9 cents per share for the second quarter, significantly better than the 26-cent loss analysts had expected. Revenue increased 92% from a year earlier to $7.8 billion, exceeding the Wall Street consensus estimate of approximately $6.9 billion.
Despite the stronger results, SpaceX shares came under pressure as investors examined the scale of the company’s spending. The stock declined about 12% on Wednesday and remained below the $135 price set during its June initial public offering.
Starlink Supports Revenue Growth
SpaceX’s connectivity division remained an important source of income, supported by continued expansion of its Starlink satellite internet network. Starlink subscriptions doubled from the previous year to approximately 12 million.
The company’s artificial intelligence operations also recorded strong growth. AI-related revenue reached around $2.6 billion during the quarter, more than tripling compared with the same period a year earlier.
Management said demand for computing capacity remained strong and disclosed an additional $6.7 billion in cloud-computing contracts signed after the quarter ended.
AI Investment Raises Questions
SpaceX spent approximately $18.4 billion on capital projects during the quarter, including about $15.8 billion directed toward AI computing infrastructure. The remaining investment supported Starship development, satellite production and ground infrastructure.
Chief Financial Officer Bret Johnsen said recent computing investments were generating returns faster than expected. However, the company indicated that capital expenditure could remain near current levels during the next two quarters.
Investors are assessing whether revenue from Starlink and new AI services can support such aggressive spending without creating prolonged pressure on cash flow.
Stock Volatility Expected
SpaceX completed its public listing in June at $135 per share, raising approximately $75 billion in what became the largest initial public offering on record.
Further volatility could emerge as restrictions covering about 911 million existing shares begin to expire. The release of additional stock into the market may increase selling pressure, particularly if early investors and company insiders decide to reduce their holdings.
SpaceX continues to invest in Starship, next-generation Starlink satellites and AI infrastructure. Its future market performance is likely to depend on whether these expensive projects can produce sustainable revenue while meeting the ambitious growth expectations associated with its public valuation.
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