SpaceX Shares Drop 8% After First Public Earnings Report

Space Exploration Technologies Corp. shares fell nearly 8% in after-hours trading on Tuesday following the release of the company's first public quarterly earnings report. While the company beat second-quarter estimates and reported a narrower-than-expected loss driven by Starlink, investors reacted negatively to $18.4 billion in capital expenditures.

CEO Elon Musk characterized the share price decline as an "insane opportunity," noting that shares were trading 42% below their peak and between $10 and $20 below the $135 IPO price. The company attributed the high spending to its expansion in the space economy and an ongoing AI buildout, which includes the development of orbital data centers.