SpaceX reports $4.4 billion profit and weighs merger with Tesla

what happened

In its second earnings report as a public company, SpaceX reported third-quarter revenue of $14.6 billion and a profit of $4.4 billion, according to the Wall Street Journal. Artificial intelligence drove much of the growth, while the space and connectivity businesses also gained.

Chief executive Elon Musk said the boards of SpaceX and Tesla have formed special committees to discuss a merger, at the request of shareholders. He said a deal is not a certainty. Musk also predicts that SpaceX's annual recurring revenue will exceed $500 billion by the end of 2027 and could reach a trillion dollars. He said he spends four days a week in Memphis to bring the supercompute cluster online. He called it highly likely that the Louisiana launchpad will be ready for rockets in three years.

why it matters

For investors, the key signal is the possible combination of SpaceX and Tesla, which would affect shares of both companies. The revenue forecasts and launch timelines are still management statements rather than confirmed results.

market impact

Tesla shares: a possible merger with SpaceX adds uncertainty for the stock of both companies

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