SpaceX Shares Plummet After $60 Billion Cursor Acquisition

Space Exploration Technologies Corp. reported its first quarterly financial results as a publicly traded company on August 4, showing a 92% year-over-year revenue increase to $7.8 billion. While the company reduced its net loss to $541 million from $1 billion in the previous year's quarter, the stock market responded negatively to the results.

Investors reacted to massive capital expenditures in artificial intelligence, which totaled $15.8 billion during the second quarter. The downturn was further exacerbated by the announcement that the company is acquiring AI start-up Cursor in an all-stock transaction valued at $60 billion, a move that dilutes existing shareholders.

The company's stock has fallen 20% from its IPO price and 52% from its all-time high. SpaceX currently holds a market capitalization of $1.5 trillion.