SpaceX Shares Fall 9% as AI Capex Concerns Eclipse First Profit

SpaceX shares dropped 9.14% to $144.75 on Thursday, erasing the prior session's 7.8% gain, as investors weighed surging AI capital spending against the company's first-ever quarterly profit. SpaceX reported third-quarter revenue of about $14.58 billion on Wednesday, up 161% year over year, with net income of $4.4 billion. AI business revenue rose to $7.56 billion, surpassing Starlink connectivity for the first time. CFO Bret Johnsen said fourth-quarter capital expenditure could reach $35 billion to $40 billion, up sharply from roughly $19.6 billion in the third quarter, with debt at $36.1 billion at period end. MoffettNathanson analyst Julie Zhu said the results highlight substantial funding needs in coming years; SpaceX countered that it holds investment-grade status and ample debt capacity. Separately, Elon Musk said SpaceX and Tesla have formed independent special board committees to study a merger, recusing himself over conflicts. Reuters reported internal review could be delayed by weeks; Bloomberg said the parties aim to announce a deal in the first half of 2027. JPMorgan raised its SpaceX price target to $500 from $240, and BofA to $275 from $235.