Shares Fell Nearly 9% in After-hours Trading

Elon Musk said people were "underestimating" SpaceX after the company posted its first-ever quarterly earnings report, showing revenue nearly doubled while spending skyrocketed. SpaceX, which builds rockets and Starlink satellites and owns social media platform X, began trading on the US stock market in June. Revenue grew 92% to $7.8bn (£5.8bn) year-over-year, but spending jumped more than 550% to $18.3bn, with a net loss of $2bn in the first half.

Shares fell nearly 9% in after-hours trading. Musk told analysts that Starlink, the only profitable segment, brought in $1.6bn in Q2 and could eventually "operate most of the world's internet. He also touted SpaceX's AI compute business, currently serving Google and Anthropic, which has 1.4 gigawatts of capacity and should reach at least 10 gigawatts next year.

"Data centres are a trivial problem compared to making reusable rockets, Musk said. The space segment posted a $542m net loss on $962m revenue, while AI lost $1.2bn on $2.5bn revenue. CFO Bret Johnson said capital spending would stay at a "very similar" level.

Musk predicted $1tn revenue by 2030, a year earlier than his prior estimate. Shares remained down after hours, erasing daily gains, and have drifted below the $135 debut price for weeks.