SpaceX shares fell sharply on Tuesday, closing at $108.27 and shedding 13.6% as investors responded to second-quarter earnings that showed soaring artificial intelligence capital expenditures and the prospect of a wave of insider shares hitting the market as soon as Wednesday.
The selloff pushed SPCX below its June 12 IPO price of $135 for the first time since early trading days, bringing the stock to 20% below its offering price and roughly 52% off the near-$226 peak it reached shortly after its debut. Volume reached more than 202 million shares, well above the stock's recent daily average, reflecting widespread repositioning ahead of the lockup release.
Q2 earnings: strong revenue, alarming capex
SpaceX reported second-quarter revenue growth of approximately 92% year over year, beating analyst expectations, according to The Motley Fool. However, total capital expenditures for the quarter came in at $18.4 billion, with roughly $15.8 billion allocated to AI compute infrastructure, nearly double the prior-year period, per 247 Wall St. Losses widened in both the AI and Space segments.
The disconnect between top-line momentum and the capital intensity required to sustain it drove the market's reaction. SpaceX's Starlink broadband segment continued to show strong subscriber growth, but investors are questioning when the company's aggressive AI buildout will translate into operating-level profitability. The company has not provided explicit guidance on when consolidated losses will narrow.
Lockup expiry: up to 140% more shares may trade Wednesday
Compounding the earnings-driven pressure, the first post-IPO lockup expiration for SpaceX is scheduled for August 6, the day after the selloff. Market reports indicate the expiration could increase the freely tradable share count by more than 140%, allowing company insiders, early investors, and pre-IPO shareholders to sell for the first time since the June offering.