SpaceX Expects $1 Trillion Annual Revenue by 2030, Stock Drops 14%

SpaceX expects to reach $1 trillion in annual revenue by 2030, a year earlier than its previous forecast, according to CEO Elon Musk during the company's first earnings call as a public entity. Following the announcement, SpaceX shares fell approximately 14% in after-hours trading and continued to decline during Wednesday's session, as investors reacted to rising capital expenditures rather than the earnings beat. SpaceX reported $7.81 billion in second quarter revenue, a 92% increase year over year, surpassing analysts' expectations of $6.81 billion. Adjusted EBITDA reached $3.5 billion, nearly double the forecast of $2 billion. Musk indicated that the accelerated timeline for reaching $1 trillion in revenue is an internal projection, with a possibility of achieving it as early as 2029. Capital expenditures surged to $18.37 billion, over six times the amount spent in the same period last year, with $15.83 billion allocated to its AI business, exceeding analysts' estimates of $13.22 billion. The AI segment includes a new partnership with Nvidia for satellite-based computing. Starlink revenue increased by 66%, remaining SpaceX's only profitable segment, although revenue per subscriber declined. Additionally, SpaceX faces a lockup expiration this week, potentially releasing nearly 20% of outstanding shares, which could further pressure the stock.

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