Elon Musk’s rocket maker nearly doubled its revenue but it also more than doubled its spending on AI.

🚀 Debut numbers clear expectations

  • SpaceX shares fell as much as 8% after its first public earnings report on Tuesday. The company delivered the growth investors wanted, but paired it with blockbuster AI spending.
  • The rocket launched cleanly. Wall Street became considerably less enthusiastic during the landing sequence.
  • Second-quarter revenue surged 92% year over year to $7.8 billion, comfortably beating analysts’ . The net loss narrowed to roughly $541 million, far better than the expected $2.1 billion. On traditional earnings metrics, SpaceX decisively cleared the tower.
  • The report followed June’s historic , initially sending SpaceX shares toward $225.
  • They have since lost almost half their value, leaving the company worth around $1.65 trillion. Public markets welcomed Musk to quarterly reporting with their traditional gift: immediate judgment.

🧠 AI ambition produces a giant bill

  • SpaceX spent almost $16 billion on AI infrastructure during the quarter, more than double the previous period and well above Wall Street’s forecast.
  • Capital expenditure, or capex, covers long-term assets such as data centers and chips. SpaceX is purchasing both at interplanetary scale.
  • Management said AI spending would remain near current levels for at least two more quarters. Musk plans to expand computing capacity from 2 gigawatts by year-end to closer to 10 than 5 gigawatts by late 2027. Each additional gigawatt can cost tens of billions.
  • At 10 gigawatts, SpaceX’s data centers could consume roughly as much electricity as New York City during peak summer demand.
  • Musk also committed future infrastructure exclusively to Nvidia hardware, giving Blackwell and its successors the contract while .

🌌 Musk aims for the trillion-dollar year

  • SpaceX’s valuation rests on several modest little objectives: reusable missions to Mars, orbital data centers, global satellite connectivity and a leading role in AI. That’s several industries that barely exist.
  • Tesla is increasingly collaborating with SpaceX, , a proposed semiconductor manufacturing initiative.
  • That overlap could help Musk secure chips and infrastructure internally, though it also ties two enormously valuable companies more closely to the same capital-intensive AI wager.
  • Musk expects SpaceX to generate $1 trillion in annual sales by 2030, one year earlier than previously forecast, with a “non-zero” chance of reaching it in 2029. Quarterly revenue is currently $7.8 billion. Ambitious is one word. Vertical is another.