SpaceX shares sank 7% on Wednesday after a surge in artificial intelligence spending rattled investors and clouded an otherwise expectation-beating quarter.
In SpaceX’s first earnings report as a public company on Tuesday, Elon Musk’s space firm said its capital expenditures jumped sixfold to $18.4 billion in the second quarter
This figure was ahead of analyst expectations, with the majority of the spending going toward AI. The company’s stock closed at just over $125 on Tuesday, sitting below its $135 initial public offering price. It is well off its more than $200 all-time high that was hit shortly after its listing.
SpaceX’s CFO, Bret Johnsen, looked to allay investor fears over capex spending. The company has been “efficient” with its spending, he said on an earnings call. “SpaceX wants to tell the story they’re the market leader. … But people still have these questions: how quickly can they grow?