Elon Musk expected to face intense investor scrutiny in SpaceX’s post-IPO earnings debut

New York: Investors in Elon Musk's space venture will get their first opportunity to question the chief executive on Tuesday, as SpaceX issues its debut quarterly earnings report since going public.

The high-stakes call comes as SpaceX stock faces severe headwinds. Shares closed Monday at $114.46—a sharp decline from their $135 initial public offering price and down by half from their peak of $225 in June. The stock slump reflects growing investor concern that Musk may have overpromised on the company's growth timeline, alongside mounting anxiety over an impending lockup expiration. On Thursday, the prohibition preventing company insiders from selling public shares will begin to ease, releasing over 900,000 shares for trading and more than doubling the current floating supply. This release is only the first of several tranches expected to enter the market over the coming months, creating further trading volatility.

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Financially, SpaceX is burning through cash at a rapid rate. Net losses for the first half of the year are expected to eclipse the $5 billion lost in all of last year. For the second quarter ended in June, a FactSet survey of analysts predicts a net loss of $1.9 billion, or 23 cents per share. Despite the heavy losses, some Wall Street analysts are projecting a sharp second-half rebound that could return the company to profitability.

Wall Street will likely press Musk for updates across several key operations. Top of mind is the development timeline for the massive Starship rocket, which NASA plans to use to return astronauts to the moon. Following an abandoned launch attempt, Starship successfully placed satellites into orbit during a test late last month. Investors are eager to see if upcoming trials will feature ambitious recovery maneuvers, such as using giant mechanical arms at its Texas Starbase to catch hovering rockets and boosters upon return.

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Musk is also expected to face questions about expanding the Starlink satellite network—a reliable cash generator with global contracts—as well as hypothetical proposals for football-field-sized orbital data centers. Conversely, the company's AI venture, known for its Grok model, and the social media platform X remain notable drains on capital.

Additionally, investors may query Musk regarding persistent rumors of a potential merger with his electric vehicle company, Tesla. However, the topic is expected to yield few concrete details. Neither firm has confirmed any combination plans, and Musk has routinely dodged the subject in the past, citing securities regulations that restrict him from commenting on potential corporate transactions. (AP)