Morning Briefing: SpaceX delivers – and disappoints
SpaceX is growing rapidly and exceeding expectations - but the bottom line shows a high loss. Investors are reacting accordingly cool, while Musk is countering with even bigger promises.
Good morning valued readers, Musk's endeavors are seldom small – certainly not with SpaceX. Following the record-breaking IPO in June, which raised 75 billion dollars and valued the company at approximately 1.8 trillion dollars, investors eagerly awaited the first quarter earnings to prove the growth could translate into profit.
Revenue for SpaceX grew nearly 92 percent year-over-year to 7.8 billion dollars, significantly more than analysts anticipated. Starlink, the satellite internet service, remains the driving force, attracting more airlines and private customers. Operating income surged 80 percent to around 1.66 billion dollars. However, these numbers did not sway Musk's investors.
Net loss still stood at 541 million dollars. The crux lies in this figure. While Starlink generates revenue, the relentless investment demand elsewhere is eroding profits. In after-hours trading, the stock temporarily fell by up to eight percent.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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