Elon

The stock was down more than 13 percent as investors were spooked by the company’s heavy investments.

SpaceX share price has plunged more than 13 percent, a day after the Elon Musk-run company reported its first quarterly earnings as a publicly listed company.

On Wednesday, the stock closed down at $108.10, down 13.6 percent from Tuesday’s close of $125.33.

Investors have been spooked by the increase in the company’s capital expenditure. At $18.37bn, it was a six-fold jump from last year, and much higher than the $13.2bn that analysts had forecast.

The majority of that investment, $15.8bn, is earmarked for artificial intelligence (AI) infrastructure, which includes specialised compute, storage, networking and software systems required to build, train, deploy and operate AI models at scale. SpaceX has said it wants to increase the capacity of its data centres from 1.4GW currently to 2GW by year-end.

Investors across the technology sector are questioning whether the large investments in AI infrastructure will actually yield returns.

“We’ve watched the same scrutiny land on Big Tech this earnings season, where investors have questioned open-ended wallets and started demanding a visible return on them,” said Josh Gilbert, lead analyst at trading platform eToro.

“SpaceX faces that test with an added degree of difficulty because it’s asking shareholders to bankroll data centres in orbit.”

SpaceX has said its computing capacity not only serves its Grok models but is also actively sold, with $14.1bn in cloud-services agreements lined up.

The one area that SpaceX saw some profit was from the “connectivity” business, with revenue jumping 66 percent from a year earlier as the number of subscribers to its Starlink satellite communications service doubled to 12 million, bringing in $1.66bn in operating income.

SpaceX’s share price faces another test on Thursday, when the first tranche of the post-IPO lock-up expires, making up to 911.5 million shares, roughly 20 percent of restricted holdings, eligible for sale.

Melissa Otto, head of Visible Alpha research at S&P Global, told Al Jazeera that the stock is “likely to be volatile” once the lock-up lifts.

SpaceX’s IPO was priced at $135 per share and climbed to $225 within days of its June 12 debut, briefly catapulting Musk as the world’s first trillionaire. The stock has since dropped.

Revenue was up more than 90 percent from the same period a year ago, beating analyst expectations.

SpaceX reported a loss of more than half a billion dollars in its first quarterly statement as a public company, but the loss was less than Wall Street expected and revenue soared.

On Tuesday, the company run by Elon Musk reported a loss of $541m, or 9 cents per share, in the three months through June, less than half what financial analysts had expected.

Revenue jumped to $7.8bn, up more than 90 percent from the year-earlier period, beating analyst expectations. LSEG had forecast revenue growth of more than $6.9bn, and Bloomberg analysts had forecast $6.8bn.

The Starbase, Texas-based giant ended the second quarter with $100bn in cash, according to United States Securities and Exchange Commission filings.

The company touted several achievements in the quarter, including $6bn in new US government contracts for Starshield, its national security-centric satellite system, and two successful launches of its Starship V3 in the last 90 days.

Starlink and SpaceX’s broader connectivity operations remain the company’s primary financial engine, underpinning Musk’s push to build an AI-first business that extends beyond renting compute capacity to developing frontier models, consumer and enterprise software, and, eventually, data centres in space.

The company’s satellite-internet unit has continued to expand its global subscriber base, aided by launches of additional satellites and a growing range of consumer, enterprise, aviation, maritime and government services.

Investors are watching whether SpaceX can maintain growth while improving the economics of its network, particularly as it spends heavily to expand coverage, increase capacity and develop direct-to-device mobile services.

The company said it spent $18.37bn on Starlink and Starship expansion efforts, in addition to building out its AI infrastructure. Musk said the company expects its “Starmind” AI satellites to be launched next year.

In its AI business, the tech giant had an operating loss of $1.2bn, as the company also released its most powerful Grok model yet. This comes as the company faces lawsuits around the globe for Grok being used to generate sexualised images of people without their consent.

Separately, SpaceX said it had partnered with Nvidia to use its chips in the Starmind AI1 orbital compute satellites.

When SpaceX debuted on public markets earlier this year, it was the largest stock market debut in history, cementing Musk as the world’s first trillionaire. However, it was a short-lived title because of a sell-off in the broader AI sector and on investor worries that Musk had oversold them on the company’s future prospects for space travel and colonisation, among other issues.

The company’s stock has tumbled 8 percent since its IPO.

SpaceX surged on Tuesday trading. It finished the day up 9.4 percent, but has since tumbled in after-hours trading and was down 7.2 percent since the market close.

July 14 (UPI) — The Wisconsin Elections Commission has sent two complaints to prosecutors accusing businessman Elon Musk of violating anti-bribery law when he gave out millions to people to encourage them to vote last year.

The bipartisan commission voted 5-1 to forward the complaints to the Brown County District Attorney, WISN-TV in Milwaukee reported.

Musk’s American PAC wrote $1 million checks to two voters in the 2025 election as part of tens of millions he invested in the failed campaign of conservative Brad Schimel, who sought a seat on the Wisconsin Supreme Court. He lost to Susan Crawford, a liberal, who previously served as a circuit court judge in Dane County.

Musk also gave out other prizes ranging from $20 to $100 for those who signed the “Petition in Opposition to Activist Judges,” Forbes reported.

The commission said Musk’s post on X offering $ 1 million to those who voted in the Wisconsin Supreme Court election to induce them to vote showed probable cause that he violated state election law banning bribery.

Lawsuit claims Tesla’s Autopilot shortcomings led to fatal crash; family seeks $1m in damages and punitive measures.

The family of a Texas woman who was killed has filed a lawsuit against Tesla after a driver using a Model 3’s automated driving assistance system crashed into a suburban Houston home last week.

The complaint, filed on Tuesday, argues that Tesla should be held liable for the wrongful death of 76-year-old Martha Avila. The family alleges that the automaker, led by Elon Musk, failed to adequately warn drivers about alleged defects in its Autopilot and Full Self-Driving systems.

Avila’s daughter, Jennifer Barbour, and her husband, Justin Barbour, said the Model 3’s driver, Michael Butler, told law enforcement he engaged Autopilot before ploughing through the front wall of Avila’s home in Katy, Texas, the United States, on June 19, pinning her before she succumbed to her injuries at a nearby hospital, according to the complaint.

Video obtained by KHOU – Houston’s CBS affiliate — shows the car travelling at top speed over the front lawn of Avila’s home in the Houston suburb before slamming into the front room.

The driver told the Harris County Sheriff’s Office that he was using the technology at the time of the accident. The driver in the incident was not under the influence of alcohol and is cooperating with authorities.

Butler is also a defendant in the Barbours’ lawsuit. It is unclear whether he has a lawyer.

Musk, the world’s richest person, posted on X on Monday night: “FSD drives slowly through neighbourhood streets and this was a high-speed crash!”

Ashok Elluswamy, vice president of AI software at Tesla, posted on X in response, saying that “the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area.”

The lawsuit filed in a Harris County, Texas, state court seeks more than $1m in damages, and punitive damages reflecting Tesla’s alleged “reckless disregard for a substantial risk of severe bodily injury”.

The National Highway Traffic Safety Administration (NHTSA) has been investigating the crash.

Since 2016, the NHTSA has opened nearly 50 special investigations of Tesla crashes believed to involve advanced driver assistance systems. About two dozen deaths were reported.

In March, the NHTSA escalated its probe into 3.2 million Teslas equipped with Full Self-Driving, on concern the system may fail to detect or warn drivers in poor visibility. In 2023, Tesla recalled about two million vehicles, nearly all of its electric vehicles on US roads, to better ensure that drivers pay attention when using Autopilot.

Tesla has said Autopilot enables vehicles to steer, accelerate and brake within their lanes, while Full Self-Driving lets vehicles obey traffic signals and change lanes.

The carmaker has also said both technologies require “fully attentive” drivers whose hands are on the wheel.

The incident comes as the Musk-owned company is rolling out robotaxis using automated software in several US cities this year and plans to invite Tesla owners across the country to put their cars into the fleet using the same system.

Actor-comedian Elon Gold and pro-Israel influencer Lizzy Savetsky are facing backlash after making an “offensive” joke in an interview on the red carpet for “The Wedding Entertainer (The Tale of Moishe Badhan)” at the Tribeca Festival.

In the interview, Gold said the film was shot in Israel. “I was only raped by two Israeli dogs,” he said.

“I thought they only rape Palestinians,” Savetsky replied, to which he said: “No, I got also a dog.”

The clip spread widely on social media and drew outrage. In a statement posted on social media, the Tribeca Festival called the remarks “offensive and unacceptable.”

“Sexual violence and human suffering should never be mocked or minimized,” the statement said. “The comments do not reflect the Tribeca Festival’s values, and we regret the hurt and offense they have caused.”

The statement said the festival had not been able to reach the filmmakers. A Tribeca spokesperson said Savetsky was not in the film and was not credentialed by the festival, but was invited to the premiere by the film team.

Gold’s manager did not immediately respond to a request for comment. In a video statement posted to social media, Savetsky said the remarks were in reference to a “ridiculous claim” in the New York Times that Israeli officials trained dogs to rape Palestinians.

The paper “published this piece with zero evidence. And we’re all just supposed to sit here with a straight face and take it like it is some sort of truth.”

She added that the film festival is a “forum that is meant to spark dialogue” and that Jewish comedians throughout history have used humor as a way to cope with anti-Semitism.

“The Wedding Entertainer” tells the story of a disgraced Hasidic comedian who is looking to book one last gig to raise the $20,000 he needs to marry off his daughter. He convinces his childhood best friend to let him co-host his son’s wedding alongside a “younger and flashier” wedding MC — played by Gold —who had already been hired. Gold is also an executive producer.

Elon Musk’s rocket company SpaceX is targeting a valuation of nearly $1.77 trillion in its blockbuster initial public offering (IPO), paving the way for the largest stock market debut in history.

In a filing with the US Securities and Exchange Commission on Wednesday, SpaceX said that it plans to sell 555.6 million shares at $135 apiece, raising approximately $75bn.

The eye-popping valuation would make SpaceX the world’s seventh-largest company by market capitalisation, ahead of Musk’s electric vehicle maker Tesla and social media giant Meta, and just behind Taiwanese chipmaker TSMC.

It would also eclipse energy giant Saudi Aramco’s 2019 debut, which raised $26bn at a valuation of $1.7 trillion.

Musk, who holds a roughly 42 percent stake in SpaceX, is poised to become the world’s first trillionaire upon the company’s debut on the New York-based Nasdaq stock exchange on June 12.

Despite the public listing, Musk will retain effective control of SpaceX with more than 82 percent of voting rights, the result of a dual-class stock structure that grants certain shares 10 votes instead of one.

The Texas-based firm’s decision to set a specific share price ahead of its IPO marks a break from usual practice.

Companies preparing for a public listing usually announce a preliminary price range that can be adjusted based on investor interest.

“The genuine surprise is that SpaceX fixed a price before the investor roadshow began,” Fabien Yip, a market analyst at online trading and investment company IG Group, told Al Jazeera.

“To me, this reflects Musk’s control over the deal terms and his confidence that the book will fill.”

Founded by Musk in 2002, SpaceX is best known for designing and launching rockets, spacecraft and reusable launch vehicles on behalf of NASA and private companies.

The company also provides internet services and artificial intelligence models through its Starlink and xAI divisions.

Musk has outlined lofty ambitions for SpaceX, including to establish a “self-sustaining” city on Mars, “make life multiplanetary,” and “extend the light of consciousness to the stars”.

SpaceX’s listing will be a test of investors’ confidence in Musk’s vision, which has yet to translate into profits at the company.

SpaceX reported a net loss of $4.9bn on revenue of 18.7bn in 2025, followed by a $4.3bn loss in the first quarter of this year.

Jay R Ritter, an emeritus professor at the University of Florida who specialises in IPOs, said the SpaceX IPO differs from Saudi Aramco’s blockbuster listing as the state-owned oil company had a track record of generating large revenues and profits.

“SpaceX, in contrast, has trailing annual revenue of less than $20bn, and is not profitable,” Ritter told Al Jazeera.

“So, one company’s valuation was – and is – based on its demonstrated profitability, while the other company’s valuation is based on potential.”

“With SpaceX, there is a risk that cash flows will be used to send hundreds of thousands of people to Mars, at a loss,” Ritter added.

Despite SpaceX’s lack of profitability, market sentiment is strong, said IG’s Yip, noting that buyers of investment products linked to the listing are pricing the company’s end-of-first-day market capitalisation at $2.2 trillion.

“The Tesla parallel is perhaps worth drawing: It debuted in 2010 as a loss-making company and largely tracked the S&P 500 for years, only breaking away decisively once it turned profitable for the first time in Q1 2013,” Yip said, referring to the benchmark stock index on Wall Street.

“SpaceX investors are making a similar bet on future growth, with the added complexity that SpaceX’s addressable market – rockets, satellite internet, AI – is considerably broader than Tesla’s was at listing.”