SpaceX’s AI splurge puts a damper on debut earnings after IPO

SpaceX stock fell as much as 8.8% in post-market trading after the company reported second-quarter capital spending of about $18.4 billion, driven by higher-than-expected AI investments, dampening its inaugural quarterly report. Despite beating Wall Street forecasts for revenue, AI losses, and Starlink subscriber growth, CEO Elon Musk said on a conference call, 'We expect the cadence of AI development to improve dramatically.'

SpaceX stock fell Tuesday after the company disclosed higher-than-expected spending on its artificial intelligence business, dampening an inaugural quarterly report that broadly surpassed Wall Street forecasts. Shares of entrepreneur Elon Musk’s rocket, satellite and AI conglomerate tumbled as much as 8.8% in U.S. post-market trading after it said capital spending jumped to about $18.4 billion in the second quarter. “We expect the cadence of AI development to improve dramatically,” Musk told analysts on a conference call after the company reported results that beat forecasts for revenue, AI losses and Starlink subscriber growth.