STARBASE, TEXAS / RankWire.AI / – SpaceX shares declined by 13.6% on Wednesday, August 5, closing at $108.27, marking their lowest level since the company’s June public debut. This downturn followed the release of the company’s first quarterly earnings report as a publicly traded entity, which revealed $18.37 billion in capital expenditure for the quarter. Out of this, $15.83 billion was allocated to artificial intelligence infrastructure. In the same quarter last year, SpaceX invested $749 million in AI assets.
During trading, the stock hit an intraday low of $107.18 and ended nearly 20% below its $135 IPO price. SpaceX’s shares began trading on Nasdaq on June 12, issuing 638.9 million Class A shares including the full allotment reserved for underwriters. The offering generated approximately $85.68 billion in net proceeds. Following the IPO, the stock reached a high of $201.80 before experiencing the recent declines.
Revenue for the quarter grew by 92%, reaching $7.81 billion from $4.07 billion a year earlier. The company’s net loss was reduced to $541 million from roughly $1.01 billion, while operating losses decreased from $970 million to $143 million. Adjusted EBITDA amounted to $3.54 billion. Elon Musk, the CEO, participated alongside other executives in the initial earnings call after the IPO.
Capital boost driven by AI infrastructure investment
The AI segment generated revenue of $2.56 billion, reflecting a 247.5% increase from $737 million. The rise was primarily driven by new AI services and infrastructure, which contributed $1.88 billion to the growth. Despite the revenue surge, the AI division posted an operating loss of $1.26 billion, compared to $1.52 billion a year earlier. R&D expenses for AI climbed 94.1% to $2.18 billion, while advertising revenue decreased by $59 million during the quarter.
Starlink and related connectivity services brought in $4.29 billion, an increase of 65.8%. Income from connectivity operations grew 79.4% to $1.66 billion. The number of consumer subscribers increased by 101.2%, even as the average revenue per user declined by 22.4%. Additional revenue streams from government, aviation, maritime, and enterprise sectors contributed $939 million. SpaceX’s space division reported sales of $962 million and an operating loss of $542 million.
Restrictions on shares after IPO begin to lift
On Thursday, August 6, up to 911.5 million shares held by employees and early investors will become eligible for sale. This block accounts for roughly 6.9% of SpaceX’s 13.18 billion outstanding Class A and Class B shares. It surpasses the IPO share count by approximately 272.6 million. SpaceX outlined the phased release schedule in its SEC filing. Although holders are permitted to sell, there is no obligation to do so.
At Wednesday’s closing, the initial unlocked block was valued at about $98.7 billion. As of July 28, SpaceX listed 7.70 billion Class A shares and 5.49 billion Class B shares outstanding. As of the end of June, the company held $93.52 billion in cash and $6.49 billion in marketable securities. This August 6 unlock marks the first scheduled release for restricted shareholders, with additional lock-up periods outlined in the company’s post-IPO timetable.