SpaceX shares reached a new all-time low on Wednesday, closing down 13.6% following the company's second-quarter earnings report. This release marks the firm's first performance disclosure as a public entity. While the results surpassed analyst expectations, the market reacted negatively to ballooning capital expenditures specifically tied to artificial intelligence.
The company reported AI spending of $15.8 billion for the quarter. This figure represents a significant jump from the $7.7 billion recorded in the first quarter of the year. Although the AI segment narrowed its operating loss to $1.26 billion, investors remain concerned about whether these heavy infrastructure investments will yield the necessary returns. Total quarterly capital expenditures reached $18.37 billion.
Despite the stock pressure, there were operational highlights. SpaceX reported total revenue of $7.8 billion for the quarter, an increase from $4.7 billion in the first quarter. Starlink remains a core pillar of the business, with the subscriber base exceeding 12 million users. Adjusted EBITDA for the connectivity service reached $2.60 billion.
Additional headwinds include the upcoming lockup expiration for insider shares. Market analysts expect a significant number of shares to enter the tradable float, which may create further downward pressure on the stock price in the near term. Management is also navigating technical developments, including a potential tower catch for the next Starship flight and a new partnership with Nvidia for orbital computing payloads.
Looking ahead, the company continues to focus on its satellite broadband expansion and the ongoing testing of its heavy-lift launch vehicles. Elon Musk stated that the revenue run rate could reach $100 billion by year-end, provided the business continues to scale its operations.