BUSINESS

SpaceX Shares Crash 9% After First Earnings Reveal $18 Billion AI Spending Spree

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Sources: 26

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Sources: 26

SpaceX shares fell sharply on Wednesday, August 5, after the company's first-ever public earnings report revealed a massive surge in artificial intelligence spending that spooked investors. The Elon Musk-led company started trading on the U.S. stock market in June. Quarterly revenue nearly doubled to $7.8 billion from a year earlier. But spending rose to $18.3 billion, more than six times the previous year's figure. The shares fell by 9% after the news was announced. SpaceX reported a loss of $143 million in the quarter ended June, and $2 billion in the first half of the year. Investments made in AI constituted 86% of total expenditure, amounting to $15.8 billion in the second quarter alone. During an investor call, Musk acknowledged that people seemed to be "underestimating" SpaceX. He emphasized Starlink, the company's profitable satellite internet division, which he expects to bring in $1 trillion in revenue by 2030. He highlighted the explosive growth of SpaceX's AI compute business, which is providing compute power to Google and Anthropic. Capacity will go up to at least 10 gigawatts next year, increasing from 1.4 gigawatts currently. Analysts were cautious. Matt Britzman of Hargreaves Lansdown said that by going "all in" on data centres, Musk was making SpaceX resemble "an AI infrastructure company with a remarkable space business bolted on." The rocketry business of SpaceX incurred a net loss of $542 million on revenues of $962 million. The share price has fallen steadily from its all-time high of $225 in June, to trade currently around $116. There may be further selling pressure due to the expiry of the lockup period on Thursday, when up to 911.5 million shares could enter the market.

Prepared by Christopher Adams and reviewed by editorial team.

Timeline of Events

On June 2026, SpaceX executed the largest IPO in U.S. corporate history.
· On June 2026, SpaceX shares briefly touched an all-time high of $225.64.
· In 2025, SpaceX's total annual revenue came in below $19 billion.
· In Q1 2026, SpaceX AI capital spending was $7.7 billion.
· In Q2 2025, SpaceX AI capital spending was only $749 million.
· On July 2026, SpaceX won a $1.6 billion launch order from Space Force.
· On August 4, 2026, SpaceX released its first public earnings report after the bell.
· On August 4, 2026, SpaceX reported Q2 revenue of $7.81 billion, beating estimates.
· On August 4, 2026, SpaceX reported AI capital spending of $15.83 billion, exceeding forecasts.
· On August 4, 2026, SpaceX stock fell 7.5% in after-hours trading on spending concerns.
· On August 5, 2026, SpaceX shares fell 9% to around $114 in regular trading.
· On August 5, 2026, SpaceX shares hit an intraday low of $109.23, nearing all-time lows.
· On August 5, 2026, trading volume reached 201.2 million shares, 72% above average.
· On August 5, 2026, SpaceX closed at $108.27, down 13.61% for the session.
· On August 6, 2026, the first lock-up expiration released 911.5 million insider shares.
· On August 6, 2026, the unlocked shares were worth roughly $109–$116 billion.
· On August 6, 2026, SpaceX stock fell over 12% to $109 amid the share unlock.
· On August 6, 2026, SpaceX shares hit a 52-week low of $104.83 intraday.
· On August 6, 2026, SpaceX stock partially recovered to $114.53, up 5.7%.
· On August 6, 2026, the stock traded roughly 49% below its June peak of $225.64.
· SpaceX capital spending will remain at similar levels for coming quarters.
· Additional lock-up tranches will release more insider shares through 2027.
· SpaceX aims for $100 billion annual revenue run-rate by December 2026.
· SpaceX expects AI compute capacity to reach at least 10 gigawatts next year.
· SpaceX targets $1 trillion in annual revenue by 2030 per Elon Musk.

News Intelligence

Immediate US Impact (10 words): Massive AI spending spooks investors, wiping out billions in market value.
· Possible Long-Term US Impact (10 words): SpaceX's AI bet could reshape cloud computing and satellite internet markets.
· Most Affected Groups (10 words): SpaceX shareholders, employees with lock-up shares, AI and space industry investors.
· Reader Priority (10 words): Monitor lock-up selling pressure and AI spending versus revenue growth trends.

Media Bias

Articles Published:: 26
Right Leaning:: 0
Left Leaning:: 0
Neutral:: 26

Explain Framing

Left: Focus on massive spending, worker impacts, and corporate accountability for AI investments. · Center: Revenue beat and narrowed losses offset by spending shock and looming lock-up expiration. · Right: Emphasize Musk's long-term vision, $1 trillion revenue target, and market overreaction to spending