STARBASE, TEXAS / RankWire.AI / – SpaceX experienced a decline of 13.6% on Wednesday, August 5, closing at $108.27 — their lowest finish since the company’s June public debut. This drop followed the release of the company’s inaugural quarterly report as a publicly traded entity, which revealed $18.37 billion in capital expenditures for the quarter. Of this, artificial intelligence infrastructure accounted for $15.83 billion, compared to $749 million spent on AI assets in the same quarter last year.
The stock hit an intraday low of $107.18 and ended nearly 20% below its IPO price of $135. Since beginning trading on Nasdaq on June 12, SpaceX sold 638.9 million Class A shares through the offering, including the full allotment allocated by underwriters. The transaction generated approximately $85.68 billion in net proceeds. After reaching a peak of $201.80 post-IPO, the stock has seen a series of declines.
Revenue for the quarter surged 92% to $7.81 billion from $4.07 billion a year earlier. The company reduced its net loss to $541 million from around $1.01 billion. Operating losses decreased from $970 million to $143 million. Adjusted EBITDA was reported at $3.54 billion. CEO Elon Musk participated in the first earnings call following the IPO alongside other company executives.
Capex driven by AI infrastructure investment
The artificial intelligence division generated $2.56 billion in revenue, marking a 247.5% increase from $737 million. The rise was primarily driven by new AI services and infrastructure, which contributed $1.88 billion of the growth. Despite the revenue increase, the AI segment recorded an operating loss of $1.26 billion, compared to $1.52 billion last year. Research and development spending on AI rose 94.1% to $2.18 billion. During the quarter, advertising revenue decreased by $59 million.
Starlink and related connectivity services posted $4.29 billion in revenue, up 65.8%. Connectivity operating income increased by 79.4% to $1.66 billion. The company also saw subscriber growth of 101.2%, although average revenue per user declined 22.4%. Revenue from government, aviation, maritime, and enterprise sectors added $939 million. SpaceX’s space operations posted $962 million in sales but incurred an operating loss of $542 million.
First post-IPO share restrictions set to expire
On Thursday, August 6, up to 911.5 million shares held by employees and early investors will become eligible for sale. This amount accounts for about 6.9% of SpaceX’s 13.18 billion outstanding Class A and Class B shares and exceeds the IPO share count by roughly 272.6 million. The company outlined the staggered release schedule in its SEC filing. While holders may sell their shares, they are not obligated to do so.
The initial block of unlocked shares had a notional value of approximately $98.7 billion based on Wednesday’s closing price. As of July 28, SpaceX listed 7.70 billion Class A shares and 5.49 billion Class B shares outstanding. The company ended June with $93.52 billion in cash and $6.49 billion in marketable securities. The August 6 event marks the beginning of the first scheduled release for restricted shareholders, with additional lock-up expirations listed in the company’s post-IPO timetable.