xAI, the part of SpaceX (NASDAQ: SPCX) that operates Grok, was always going to drive the entire company under.
SpaceX had almost $19 bullion in revenue last year
It lost almost $5 billion. xAI lost $6.4 billion on $3.2 billion. And Grok has already lost its chance to compete with OpenAI, Anthropic, Google, and even Microsoft (NASDAQ MSFT). Elon Musk has continued to increase his spending on data centers, for which he will never see a return.
What did not drive SpaceX down was a bond offering that was pegged at $20 billion to pay off a loan due in 2027, maybe. What did not drive SpaceX down was that investors whose shares were locked up will have their lockups unlocked, allowing them to sell. Both were a blip.