Elon Musk denied SpaceX prototype AI device reports, triggering a 7% share price decline as investors digested conflicting accounts. The company faces valuation concerns with a 111x price-to-revenue multiple in a rising interest-rate environment and has cut Starlink pricing by 50% to address data center pushback, pressuring margins.
Elon Musk dismissed reports that SpaceX built a prototype AI device, labeling the claims "utterly false." The denial spurred a roughly 7% decline in share price as investors grappled with uncertainty over the company’s AI ambitions.
Shares trade at an estimated 111x price-to-revenue multiple, stoking investor worries over lofty valuation in the context of rising interest rates and broader macroeconomic headwinds that could dampen revenue growth.
SpaceX unveiled a 50% discount on Starlink subscriptions after data center customers pushed back on pricing. While aimed at boosting adoption, the deep cut may compress service margins and weigh on profitability.
Finance
