Special committees at Tesla and SpaceX are discussing a potential merger, Musk said, calling a tie-up “a good idea” in the first official confirmation of formal talks; SpaceX shares rose 4.9% after hours.
SpaceX reported its first profit as a public company, with third-quarter revenue jumping 161% to $14.58 billion and net income reaching $4.4 billion, far above analysts’ $1.57 billion estimate.
AI drove the beat: revenue from rented computing capacity surged more than ninefold to $7.56 billion, while capital spending nearly tripled to $19.6 billion, including $16.4 billion for AI infrastructure.
Starlink added support to the quarter with 13.6 million subscribers, topping the 12.19 million estimate, though average monthly revenue per user fell to $69 from $99 in 2023 as cheaper international plans expanded.
Musk said SpaceX could reach a $500 billion to $1 trillion annual recurring revenue run rate by end-2027, underscoring how its business is shifting from satellites and launches toward cloud-style AI services.
Why is Elon Musk pushing to merge Tesla with SpaceX just as the rocket company's AI revenue skyrockets?
Will Tesla shareholders approve the creation of a massive space-auto-AI conglomerate given the unusually high voting thresholds?
SpaceX Achieves Record Q3 2026 Financials With 161% Revenue Growth, Launches Tesla Merger Deliberations
Overview
In October 2026, SpaceX reported record-breaking Q3 results, with revenue and profits far above expectations, fueled by explosive growth in its AI division after acquiring xAI and strong Starlink performance. This financial breakthrough led SpaceX and Tesla to formally explore a merger, forming special board committees and sparking stock gains for both companies. The merger aims to address high chip costs by launching the massive TERAFAB semiconductor venture with Intel, and to overcome data center limits by planning a vast orbital AI satellite network. However, the deal faces major regulatory, financial, and governance challenges, including balancing heavy capital needs and managing global security concerns.