SpaceX shares are down 50% from peak, lockup expires Thursday, and analysts expect $1.9B Q2 loss. Musk to field questions on Starship, Starlink, and Tesla merger rumors.
Investors get their first chance to question Elon Musk on Tuesday when SpaceX holds its inaugural quarterly earnings call as a public company. The shares have lost half their value from the June peak of $225, closing Monday at $114.46 – below the IPO price of $135.
The pressure on the stock stems partly from a lockup provision that expires Thursday. More than 900,000 insider shares become eligible for trading, more than doubling the current float. That prospect has weighed on the stock, traders said. The lockup release is the first of several tranches over the coming months.
SpaceX is expected to report a net loss of $1.9 billion for the second quarter, or 23 cents a share, according to a FactSet survey of analysts. Losses for the first half of the year could exceed the $5 billion in losses for all of 2024. Some analysts have penciled in a strong rebound in the second half that would return the company to profitability.
Musk is likely to face questions about the Starship rocket program. After an abandoned launch, Starship successfully deployed satellites in orbit during a test late last month. Future tests may include using giant mechanical arms at the Starbase site in Texas to catch the rocket and its booster on return. NASA hopes to use Starship to put astronauts back on the moon.
The Starlink satellite communication business is a major cash generator, with contracts around the world. The company also runs a money-losing AI business, known for its Grok tool, and the social media platform X, the renamed Twitter. Musk may be pressed on timelines for turning those operations profitable.
Rumors of a possible merger with Tesla have circulated. Neither company has confirmed discussions. Musk has previously parried questions by noting securities regulations bar him from discussing the issue. No details are expected Tuesday.
The earnings call is the first since the June IPO, which priced at $135 a share. The stock has declined steadily since then, weighed by the lockup overhang and the widening losses. The call could provide clarity on Starship's development schedule and Starlink's revenue trajectory.
Prepared with AlphaScala editorial tooling from the source reporting linked above. Indexable analysis may include a cited Alpha Score value. Publishing checks screen each story before release. Educational coverage, not personalized advice.