SpaceX shares slide on AI spending surge in debut earnings report

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SpaceX beat Wall Street's loss forecasts in its first quarterly report as a public company. The rocket and satellite firm posted a second-quarter loss of 9 cents per share, beating the 26 cents per share loss expected by LSEG. Additionally, the company's quarterly revenues nearly doubled.

However, shares tumbled in both pre-market and post-market trading, sliding as much as 8.8% and eventually falling more than 13%. Investors were spooked by heavy investments and a sharp increase in capital spending, which jumped to approximately $18.4 billion in the second quarter.

Addressing Wall Street, executives argued that hefty AI investments are paying off within a year. CEO Elon Musk struck a bullish tone, forecasting that SpaceX would hit $1 trillion in annual revenue in 2030, accelerating a previous forecast of 2031. Despite these claims, some investors continue to question the heavy AI spending and whether Musk has oversold the company's prospects.

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