SpaceX Swings to Profit as Merger Speculation With Tesla Heats Up

What’s happening

SpaceX reported blowout Q3 earnings with revenue surging 161% and swinging to profitability, driven by Starlink growth and new AI computing rental revenue. Simultaneously, Elon Musk disclosed that special committees at both SpaceX and Tesla have been formed to evaluate a potential mega-merger, though Musk says he is not on either committee and no deal is certain.

Market impact

SpaceX shares surged in after-hours trading on the earnings beat. Tesla stock rose on the merger speculation, though the combination remains speculative. The deal would create an unprecedented conglomerate spanning aerospace, automotive, and AI infrastructure—a valuation event that could reshape both companies' market positions if consummated.

Broader implications

A Tesla-SpaceX merger would consolidate Musk's control over critical infrastructure—from EV manufacturing to satellite internet to space launch. Regulatory scrutiny from antitrust authorities is likely if the deal advances, particularly given Musk's political alignment with the Trump administration.