SpaceX faces one of its biggest tests since going public as Elon Musk prepares to answer investors’ questions during the company’s first quarterly earnings call, Independent reported on Tuesday.
The call comes after SpaceX shares plunged 50 percent after rising in June, fueling concerns that investors may have become overly optimistic about the company’s long-term growth.
According to Reuters, fresh pressure is expected on the stock this week as a lockup period expires, allowing insiders to begin selling shares.
Investors are expected to question Musk about the progress of SpaceX’s massive Starship rocket programme, a key part of the preparation by the National and Aeronautics and Space Administration (NASA) to return astronauts to the moon.
They are also likely to seek updates on the company’s Starlink satellite network, its proposed orbital data center project and reports of a possible future tie-up with Tesla. Musk has historically avoided discussing such topics in detail during earnings calls, citing securities rules.
The company is also said to be under pressure financially, after net losses during the first half of the year which are estimated to exceed the $5 billion it lost during all of last year.
Wall Street analysts surveyed by FactSet expect the company to report a second-quarter net loss of about $1.9 billion, or 23 cents per share, although some analysts believe results could improve later this year.
Another concern for investors is Thursday’s lockup expiration, after which over 900,000 additional shares are expected to become eligible for trading after insiders were restricted from selling following the company’s June stock market debut. The increase will more than double the number of shares available to trade and could add further volatility.
SpaceX shares closed Monday at $114.46, well below their June high of $225 and beneath the company’s $135 initial public offering price.
The lockup expiration is the first of several scheduled over the coming months as more insider shares become eligible for sale.
Operationally, the company recently completed a successful Starship satellite deployment after an earlier launch attempt was scrubbed.
Future test flights are expected to include efforts to catch both the rocket and its booster using giant mechanical arms at the company’s Starbase facility in Texas.
Alongside its launch business, SpaceX operates the Starlink satellite internet network, which has become a major source of revenue through commercial and government contracts worldwide.
The company also owns the loss-making artificial intelligence business behind the Grok chatbot and the social media platform X, formerly known as Twitter.
