Retail Investors Sell SpaceX Shares After AI Spending Concerns

Space Exploration Technologies Corp. saw retail investors become net sellers of its shares for the first time since its June 12 public debut. On August 7, retail investors sold a net US$4.5 million in shares, marking a reversal from a period of persistent buying.

The shift followed a 13.6% slump in share price on August 5, triggered by the company's first public quarterly earnings report. While the company highlighted faster returns from AI spending, investors questioned the sustainability of using profits from the Starlink business to fund these costly AI initiatives.

SpaceX shares peaked at 67% above the US$135 IPO price in June but fell more than 22% below that price in August. Market analysts characterize the recent selling as profit-taking during a price rebound rather than panic selling. Trading liquidity has increased as the first of several lockup restrictions expired, more than doubling the shares available for public trading.