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August 5, 2026 / 12:53 PM EDT
/ CBS News
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Shares of SpaceX tumbled on Wednesday despite reporting strong revenue growth in its first public quarterly earnings report, as investors questioned the rocket maker's accelerating investment in artificial intelligence.SpaceX shares tumbled $10.06, or 8%, to $115.27 in early afternoon trading on Wednesday. Investors are worried that the company's massive investments in artificial intelligence won't be enough to justify SpaceX's $1.5 trillion valuation. SpaceX's earnings report on Tuesday disclosed $15.8 billion in AI-related capital expenditures during the second quarter, more than double the amount it spent in the first quarter."The entire market is beginning to suspect that the extraordinary spend on AI might not work out for every firm," David Trainer, CEO of New Constructs, an investment research firm, told CBS News in an email. "They cannot all be winners, yet they are all spending as if they will be."Investors looked past the company's strong quarterly report to instead focus on whether SpaceX can deliver on its ambitious agenda, which includes sending data centers into space. "Elon Musk has a history of overpromising, so investors took some of the optimistic forecasts with a grain of salt," Jay Ritter, an IPO expert and professor at the University of Florida's Warrington College of Business, told CBS News in an email.AI-related investments accounted for 86% of the company's overall CapEx spending from April to June, totaling $18.4 billion.
