SpaceX Falls 11% Amid Post-Lockup Selloff and Concerns Over Aggressive Expansion Costs

SpaceX reported that it did not sell any bitcoin during the second quarter, but its shares declined in premarket trading Wednesday as investors focused on the company’s heavy investment requirements, possible pressure on cash flow, and an upcoming insider share lockup expiration.

The stock fell 11% before the market opened, even after SpaceX delivered a better-than-expected first earnings report. Investors appeared more focused on the company’s rising capital commitments and the potential impact of a major insider share unlock scheduled for Thursday.

SpaceX generated $7.8 billion in revenue during the quarter, representing a 92% increase from the same period last year and exceeding analyst forecasts. Adjusted EBITDA climbed nearly three times to $3.5 billion, while the company reduced its net loss to $541 million. However, SpaceX spent $18.4 billion during the period as it continued expanding Starlink, advancing Starship projects, and developing AI-related infrastructure.

The company maintained its bitcoin holdings at 18,712 BTC throughout the quarter. The position was valued at around $1.1 billion at the end of June, drawing attention to how bitcoin price movements can now affect SpaceX’s quarterly financial statements under fair-value accounting rules.

SpaceX’s bitcoin holdings lost approximately $195 million in value during the quarter, adding further volatility to its financial results.

JPMorgan raised its SpaceX price target to $240 from $225 but warned that the company’s ambitious expansion plans could require significantly higher spending. The bank projects SpaceX’s capital expenditures may approach $200 billion in both 2027 and 2028, potentially creating additional pressure on free cash flow.

“We now expect capital expenditures to reach nearly $200 billion in both 2027 and 2028, further weighing on free cash flow in 2027, a trend that is also emerging across major hyperscale companies,” JPMorgan analysts said.

The investment bank also highlighted Thursday’s lockup expiration, which could allow 911.5 million shares to become eligible for sale and potentially expand SpaceX’s public float by 143%. However, JPMorgan said much of the potential impact may already be priced in, as investors have had ample time to prepare for the event.

Raymond James maintained its $800 price target for SpaceX, pointing to the company’s strong operational performance and long-term growth outlook.

SpaceX shares were last trading at $111.80.