SpaceX investors will have the opportunity to ask Elon Musk questions during the company's first financial report after going public. Shares of the space company have recently lost half their value from the June peak amid concerns about its future prospects. This is reported by the Associated Press, writes UNN.
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It is noted that SpaceX shares have halved from their peak level in June, as investors fear that Musk may have exaggerated the company's future prospects. They are also preparing for volatile trading, as some company insiders will be able to sell their shares after the so-called lockup period ends later this week.
Musk - part visionary engineer, part stock salesman - is likely to answer questions about when he expects to complete testing of SpaceX's giant Starship rockets, which NASA plans to use for a new human landing on the Moon, about plans for the company's satellite network, and the prospects of placing data centers the size of a football field in space.
Given rumors of a possible merger of SpaceX with Musk's car company Tesla, he may also be asked about such a deal, but it is unlikely to yield many details. Neither company has confirmed plans for a merger, and Musk has previously avoided answering these questions, noting that securities rules prohibit him from discussing it.
SpaceX is quickly losing money: the company's net losses for the first half of this year are expected to exceed the more than $5 billion in losses for all of last year. Some analysts forecast a significant recovery in the second half of the year, which could return the company to profitability.
According to estimates by analysts surveyed by FactSet, for the second quarter ending in June, SpaceX is expected to report a net loss of $1.9 billion, or 23 cents per share.
SpaceX insiders were barred from selling shares during the initial public offering in June, but that restriction will begin to ease on Thursday, when more than 900,000 shares become available for trading. This will more than double the number of shares available for sale on the market.
The prospect of such a sale has weighed on the share price, which closed trading on Monday at $114.46 - below the June high of $225 and also below the IPO price of $135.
The lifting of the sale restriction will be the first of several stages, after which additional share packages will become available for trading over the coming months.
After a failed launch, the Starship rocket successfully placed satellites into orbit during a test late last month. Future tests may include an attempt to use giant mechanical arms at the Starbase launch site in Texas to catch the rocket and its booster during their return to Earth.
SpaceX's satellite communications business - Starlink - is a major source of revenue for the company thanks to contracts worldwide. At the same time, the company also has a loss-making artificial intelligence division, known for the Grok tool, as well as the social network X, formerly Twitter.