SpaceX Shares Rise 50% Amid Revenue Growth and AI Debt Plans
Space Exploration Technologies Corp. shares climbed 50% since August despite insider share unlocks and a proposed $40 billion debt raise for AI infrastructure.
Shares of Space Exploration Technologies Corp. have risen approximately 50% since August 5, reaching around $163. This growth occurs despite six insider share unlocks that made nearly 2.3 billion shares eligible for trade, leaving the stock roughly 21% above its initial public offering price of $135. Three additional unlocks totaling 2.4 billion shares are scheduled for the remainder of the year, with the largest occurring after the company reports third-quarter results.
Financial reports show second-quarter revenue grew 92% year-over-year to $7.8 billion, although the company posted a net loss of $541 million for that period. Institutional interest remains active, with Fagan Associates Inc. purchasing 7,673 shares in the third quarter. Internally, COO Gwynne Shotwell sold 342,170 shares on September 22 for over $52.5 million under a pre-arranged trading plan, while CEO Elon Musk's shares remain locked until June 2027.
Operational expansions include a request for regulatory approval to increase Starship launches to 456 flights annually. However, the company faces scrutiny over a proposed $40 billion debt raise to fund Nvidia chips and AI infrastructure, which has concerned bond investors. Additionally, the company agreed to testify before the New York City Council following a subpoena regarding AI safety.
