SpaceX Agrees To Testify Before New York City Council Following AI Safety Subpoena
Yahoo Finance ·
Price change for SpaceX stock in last 1 month: 10% Now Live: Discover how much upside your favorite stocks could have using TIKR’s new Valuation Model (It’s free) >>> SpaceX ( SPCX ) has agreed to testify before the New York City Council this week. The hearing is Friday at 10 a.m. ET, before the tech committee, as part of an investigation into AI safety risks. The council subpoenaed Elon Musk and SpaceX’s AI unit on Sept. 28. Anthropic, OpenAI, Google and Meta all testified at an Oct. 5 hearing, and SpaceX did not show up. That came after the council said it would ask a judge to enforce the subpoena. Council Speaker Julie Menin called SpaceX’s absence “unacceptable.” The council wants to know if AI risks to public safety, cybersecurity, privacy, and consumers need new laws. It warned that ignoring the subpoena could bring penalties. Tech committee chair Carmen De La Rosa said the council expects answers on data privacy, safeguards and whistleblower protections. SpaceX is also facing lawsuits over Grok’s image generator. They claim it was used to mass-produce deepfake porn based on images of real people. SpaceX did not respond to a request for comment. See analysts’ growth forecasts and price targets for SpaceX stock (It’s free) >>> For SpaceX stock, this is a headline risk as Musk folded xAI into SpaceX in February. That means AI regulation now touches the whole company. SpaceX went public in June and is valued at over $2 trillion. It also closed a $60 billion deal with Cursor in August. The business is growing fast. On its August call, SpaceX reported Q2 revenue of $7.8 billion, up 92%. It posted a net loss of $541 million. Adjusted EBITDA was $3.5 billion. The AI segment is a big piece. Its revenue was $2.6 billion, up 247% from last year. Most of the jump came from new cloud deals that rent out computing power. The company ended the quarter with $100 billion in cash and a $47.5 billion backlog. Management expects to reach $100 billion in annualized revenue by December. The risk is that AI is now a larger part of the story. Legal costs and regulatory pressure could grow. Grok also trails top rivals, per CNBC. SpaceX investors will want to see how Friday’s hearing goes. A calm hearing may ease worries. A tough one could keep SpaceX stock under pressure. Estimate a company’s fair value instantly (Free with TIKR) >>> TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR’s valuation model and see what SPCX stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It’s free to use. Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
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