SpaceX extends decline to 11% on lockup expiration and capex spending fears

SpaceX CEO Elon Musk delivered bold plans for moon robots and a $1 trillion revenue target for the company during SpaceX's debut earnings report as a publicly traded company. Despite the stock sliding more than 5% following the results, Musk remained optimistic, stating that hitting the $1 trillion revenue mark may be achieved a year earlier than initially projected, by 2030 rather than 2031.

He expressed confidence in the growth of Starlink, the company's satellite internet service, claiming that it could potentially provide internet connectivity to a majority of the world's population within the next decade. However, concerns around capital expenditures, particularly in the AI segment, raised questions about the company's growth trajectory and led to a significant drop in SpaceX's stock value.

Investors remain skeptical about the ambitious revenue projections, but SpaceX's revenue more than doubled year-over-year to $7.8 billion, and its Starlink business saw a 66% year-over-year increase in revenue, reaching $4.3 billion. Musk emphasized the potential of SpaceX's Starship rocket, predicting that it could be launched at least once a day within a year and eventually enabling the company to build factories and scale manufacturing on the moon.

The company's AI business grew by 247% in the second quarter, driven by cloud hosting agreements and growth in subscriptions and advertising. Despite the challenges, Musk expressed confidence in SpaceX's ability to achieve its ambitious growth targets.