SpaceX shares drop 33% after Musk projects $1 trillion revenue

SpaceX shares fell 33 % from their recent high after the company’s CEO, Elon Musk, announced that the rocket‑maker could reach $1 trillion in revenue by 2030. The announcement came during the first earnings call following SpaceX’s historic initial public offering, which valued the company at more than $100 billion. Musk said the leap would be driven mainly by sales of artificial‑intelligence data‑center services, a shift from SpaceX’s traditional space‑launch business.

The move to AI infrastructure follows a $19 billion spend in the last quarter, most of which went toward building new data‑center facilities. Musk said SpaceX has signed contracts with Alphabet and Anthropic that could bring up to $100 billion in annual recurring revenue by the end of this year. The company plans to add between 15 and 20 gigawatts of power to its AI centers by the end of next year, a project that could cost around $50 billion per gigawatt. These figures illustrate the scale of capital needed to support the company’s ambitious growth plan.

SpaceX’s revenue in 2025 was $18.7 billion, and Musk expects it to grow more than 50‑fold in the next five years. The company also sees opportunities from its existing Starlink satellite internet service and rocket‑launch contracts, which will provide additional income streams. Musk has outlined a long‑term vision that includes a data‑center concept orbiting Earth, using solar power to reduce operating costs. If these ideas materialise, SpaceX could tap a rapidly expanding AI compute market and reach the trillion‑dollar target.

While the projected figures paint an optimistic picture, investors should note the risks. Delivering on the $1 trillion goal would require massive, sustained capital outlays and a steady stream of high‑value contracts. The company’s profit margins could be squeezed if costs rise or if competitors capture a larger share of the AI‑compute market. Nonetheless, the sharp drop in stock price may make SpaceX an attractive buy for those willing to accept the uncertainty surrounding the company’s future revenue trajectory.