Space Exploration Technologies Corp. (SPCX, Financials), the rocket, satellite and artificial intelligence company, fell about 9% after investors focused on a sharp increase in spending despite better-than-expected quarterly results.
Capital expenditures rose sixfold to $18.4 billion during the second quarter, exceeding expectations. Much of the spending went toward artificial intelligence infrastructure built with Nvidia chips.
SpaceX is trying to become a larger cloud-computing provider by renting out excess AI capacity. Chief Financial Officer Bret Johnsen said the company can earn back some of that investment in less than a year, though investors remain cautious about the scale of future spending.
CEO Elon Musk also moved forward his long-term target, saying SpaceX could reach $1 trillion in annual revenue by 2030 instead of 2031.
The stock decline shows that investors want more than ambitious forecasts. They are looking for evidence that AI infrastructure can produce sustainable revenue, stronger cash flow and a clear path to profitability.
SpaceX shares were trading well below their post-listing high and remained under their $135 initial public offering price. The next test will come when insider lockups expire, potentially allowing more shares to enter the market.