Shares of SpaceX (SPCX) plummeted 12.53% in pre-market trading on Wednesday, as investors focused on the company's surging capital expenditures and an impending wave of insider share sales, despite a strong second-quarter revenue beat.
The Elon Musk-led rocket company reported its first quarterly results as a public company, with revenue nearly doubling to $7.8 billion, up 92% year-over-year, and a narrower-than-expected loss. However, total capital expenditures ballooned to $18.4 billion, with AI-related spending alone reaching $15.8 billion. Chief Financial Officer Bret Johnsen signaled that spending would remain at similar levels over the next two quarters, unnerving traders already wary of heavy AI infrastructure costs.
Compounding the selloff, roughly 912 million restricted shares are set to unlock on Thursday, more than doubling the public float and raising the specter of significant insider selling. The combination of aggressive spending commitments and the looming supply overhang overshadowed the company's otherwise robust operational results, triggering a sharp pre-market decline.
