SpaceX (SPCX) Sinks 8% on Massive AI Burn, Impending $100 Billion Insider Sell-Off
SpaceX's shares fell after it revealed higher-than-anticipated spending on its artificial intelligence business
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Last updated: Wednesday, August 5, 2026
Quick overview
- SpaceX's shares fell by up to 7% after announcing higher-than-expected spending on its AI business, despite exceeding revenue expectations.
- The company reported $7.8 billion in revenue, surpassing analyst estimates, and narrowed its loss to 9 cents per share.
- Concerns over $100 billion of sellable shares and ongoing AI sell-offs have contributed to negative price pressure on SpaceX's stock.
- Elon Musk remains optimistic about improving AI execution and has ambitious revenue projections for the future.
SpaceX’s shares fell after it revealed higher-than-anticipated spending on its artificial intelligence business, dulling the shine of a maiden quarterly report that on broad terms crushed expectations.
SpaceX, the rocket, satellite, and AI conglomerate owned by Elon Musk, tumbled as much as 7 percent in US after-market hours after it estimated capital expenditures jumped to approximately $18.4 billion during the second quarter. “We anticipate that AI execution cadence will improve significantly,” Musk said on a conference call with analysts.
SpaceX exceeded revenue and AI loss estimates while officials detailed grand plans to leverage its Starlink Internet service and to serve as a direct rival to big American telecom carriers.
The Space Coast startup’s figures closed a tumultuous chapter that began with the largest IPO, raising $86 billion and ultimately proving a bust for investors, who quickly lost nearly 40% on SpaceX shares, which have continued to plummet amid a wide range of AI sell-offs.
Exacerbating that uncertainty is over $100 billion of shares sellable for the first time later this week, which may add to negative price pressure. The company posted revenue of $7.8 billion, beating the average of $6.81 billion.
The venture said it lost 9 cents a share in the quarter, narrower than the 24 cents expected by analysts. SpaceX’s valuation of about $1.6 trillion, which is bigger than that of Elon Musk’s Tesla and competes with several megacap technology companies, is driven by the billionaire founder’s pursuit to deliver not just scale, but also revolutionary technology within the segments.
Analysts surveyed by Bloomberg predict the rocket maker will generate $38.6 billion in revenue for 2026, in line with his track record of big pronouncements – previously predicting a SpaceX $100 billion run-rate revenue this year.
“The $100 billion ARR in December isn’t a question mark – it is what we would achieve if we basically did nothing.” SpaceX’s IPO Raises $75 Billion In Biggest Debut Of All Time. SpaceX’s $100 billion ARR in December isn’t a question mark – it is what we would achieve if we basically did nothing. SpaceX’s IPO Raises $75 Billion in Biggest Debut of All Time.
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ABOUT THE AUTHOR
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Olumide Adesina
Financial Market Writer
Olumide Adesina is a French-born Nigerian financial writer. He tracks the financial markets with over 20 years of working experience in investment trading
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