At 20:52 GMT, SpaceX is trading $116.79, down $8.54 or 6.81%.
Starlink Delivered but the AI Buildout Is Expensive
Starlink brought in $4.29 billion, above the $3.83 billion estimate. That is the one business at SpaceX making money and it beat. Subscribers are growing across consumer, enterprise, aviation, maritime and government contracts. The satellite network is expanding coverage and Starlink is one of the few global connectivity options that actually works in remote areas, at sea and in the air.
The AI side came in strong too. Revenue hit $2.56 billion against a $2.18 billion estimate across xAI, Grok, X and the data-center operation. Compute contracts with Anthropic, Google and Reflection AI are building a real revenue base. Some of the recurring revenue has not been recognized yet.
Here is the problem with both numbers. Starlink’s average revenue per user is falling as the company pushes into cheaper international plans. AI lost the company money last year to the tune of $4.9 billion. The proposed Terafab chip facility in East Texas with Tesla and Intel could run $119 billion at full buildout. Revenue is growing fast. So is the spending required to keep it growing.
Thursday’s Lock-Up Changes the Trade
The earnings report answered the revenue question. Thursday answers the supply question. Insider and early-investor shares become eligible for sale for the first time since the June IPO, and they hit the market with the stock 14% below its offering price.
Starlink is funding the company. AI revenue is real but the losses are large. Starship reported $962 million in space revenue against an $835 million estimate but the vehicle has not entered commercial service and remains a cost center alongside the AI buildout. Falcon keeps launching but nobody owns SpaceX at this valuation for the launch business.
