SpaceX released its first quarterly earnings report as a public company on Aug. 5, reporting $7.8 billion in second-quarter revenue that topped market expectations. The stock still dropped more than 5% in after-hours trading as investors zeroed in on AI infrastructure spending that ran far above forecasts.
The company said capital expenditures for the second quarter totaled $18.369 billion. About $16 billion of that went to AI computing infrastructure, well above analyst expectations of $13.2 billion. The market's concern centered on whether spending at that scale could weigh on near-term cash flow returns.
Musk keeps $1 trillion revenue target in sight
On the earnings call, CEO Elon Musk stuck with an aggressive growth outlook. He said SpaceX could reach $1 trillion in annual revenue by 2030, and said he would not rule out hitting that mark in 2029. SpaceX had previously projected the target for 2031.
Musk also said the market has severely underestimated Starlink's potential. He said that within less than 10 years, Starlink could provide the main global internet service in most countries where it is permitted to operate.
Moon robot manufacturing plan surfaces
Looking further out, Musk described a plan to expand manufacturing capacity with robots on the Moon. He said robots could build production facilities there and use solar power to support large-scale industrial development.
Musk acknowledged that the idea "sounds like science fiction" and even called it "crazy," but said he believes it will eventually become reality.
Starlink, AI and rocket revenue breakdown
By segment, Starlink generated $4.3 billion in second-quarter revenue, up 66% year over year. Its user base rose to 12 million, with 1.7 million net additions during the quarter.
AI revenue reached $2.561 billion, up 247% year over year, mainly driven by cloud computing partnerships, Grok subscriptions and growth in X advertising. Rocket business revenue came in at $962 million.
SpaceX also said its AI computing capacity has reached 1.4 gigawatts, up from 400 megawatts a year earlier, and that it plans to keep using Nvidia AI chips. The company expects annualized AI revenue to reach a $10 billion run rate by December this year.
Investors question return on heavy spending
Market analysis in the report said SpaceX's future growth will depend on Starlink expansion, Starship commercialization and returns from AI infrastructure investment. If capital spending does not translate into revenue growth quickly, the company's path to $1 trillion in annual revenue could face a steeper test.