Why SpaceX stock is falling despite strong revenue growth

TL;DR

SpaceX shares dropped 8% despite strong revenue growth in its first public quarterly earnings report.
Investors are concerned that massive investments in artificial intelligence may not justify SpaceX's $1.5 trillion valuation.
The company disclosed $15.8 billion in AI-related capital expenditures in the second quarter, more than double the prior quarter.
AI-related investments accounted for 86% of the company's overall CapEx spending from April to June.
SpaceX reported second-quarter revenue of $7.8 billion, exceeding forecasts, and narrowed its loss to $541 million.
Elon Musk highlighted rapid build-out of AI compute capacity and improvements in AI models, including Grok 4.5.
Concerns exist about spending on Earth-based data centers, a competitive business, despite plans for orbital data centers.
A lockup period expiration on Thursday could make up to 911.5 million shares eligible for sale, potentially pressuring the stock.
Morningstar views SpaceX shares as overvalued.

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