SpaceX delivered a strong first earnings report as a public company, but investors focused on the company’s massive spending plans rather than its impressive growth.
For the quarter, revenue nearly doubled from a year ago to $7.8 billion, driven by continued expansion in Starlink and its AI-related businesses. The company also reported a smaller-than-expected loss of $541 million, outperforming Wall Street’s expectations.
Despite those results, shares fell about 7% in after-hours trading as investors reacted to higher-than-expected capital expenditures. SpaceX plans to invest roughly $16 billion in AI infrastructure, signaling that profitability will likely take a back seat to long-term growth for the foreseeable future.
During the earnings call, Elon Musk also accelerated the company’s long-term outlook, saying he now expects SpaceX to reach a $100 billion annual revenue run rate by the end of this year and moved up his timeline for a $1 trillion revenue target by about a year.
While the underlying business continues to grow rapidly, the market is asking whether that growth justifies the extraordinary level of investment.
Related: The Trillion-Dollar Launch: Decoding the SpaceX IPO
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