For the first time since SpaceX went public, the world will get a first-hand look into the trillion-dollar corporation’s financials. The Elon Musk-run business will report its second quarter earnings on Tuesday, while nervous investors look to gain more insight into the rocket ship company’s potential for profit.
SpaceX had a blockbuster initial public offering in June with the largest-ever stock market debut in history. The IPO transformed SpaceX into a $2tn company and briefly crowned Musk the world’s first trillionaire. But since then, the company’s stock has plummeted by 24%, erasing nearly $500bn in market cap.
Analysts are predicting that SpaceX’s revenue will come in at $6.93bn on Tuesday, and the company will lose 26 cents per share, according to global brokerage firm XTB.
“This report comes at an important time, the share price crashed and burned in recent weeks, it is down 50% from its peak and is trading below its IPO price,” said Kathleen Brooks, research director at XTB. “Unsurprisingly, investors are jittery leading up to this report as it may determine the long-term direction for the stock.”
SpaceX is a conglomeration of several of Musk’s businesses, including the satellite maker and internet service provider Starlink, the artificial intelligence platform xAI, the social media company X and the SpaceX rocket business.
While expansive, the company is not profitable. Last year, SpaceX pulled in revenue of $18.7bn, while recording an operating loss of $4.3bn. The only profitable portion of the company is its connectivity arm, Starlink. For comparison, the social media company Meta generated revenue of more than $200bn last year with a net income upwards of $60bn.
Breaking out the revenue for SpaceX’s three main businesses, analysts are forecasting the company to report $835m for space, $3.38bn for connectivity and $2.18bn for AI, according to XTB.
The earnings come just before the first “lockup” shares in SpaceX will be free for public trading. Lockup shares are what employees and some insiders obtain before a company goes public, which they cannot trade for a set amount of time. The purpose of a lockup is to prevent a deluge of shares from hitting the market, which can depreciate the stock price.
On Thursday, 912m shares from SpaceX will be open for trading – that’s more than double the current amount available and could weaken the company’s share price.
