- SpaceX's share price is projected to fall by over 11 per cent following the release of its first financial report, despite a recent resurgence.
- The company, which went public on 12 June, reported beating revenue expectations but revealed significantly higher-than-anticipated expenditure on artificial intelligence development.
- Investors are concerned by a sixfold increase in capital expenditure, reaching $18.37bn, which is outpacing revenue growth and could strain the company's cash flow despite a recent IPO.
- Analysts suggest that while SpaceX's space-based internet business, Starlink, generates most of its current income, the company's future direction appears to be heavily focused on AI infrastructure.
- Further volatility is expected due to upcoming lock-up expiries, which will allow early investors to sell shares, potentially driving the price down further.
IN FULL
The real reason SpaceX shares are tanking after out-of-control rocket smashes into moon
