Musk calls Tesla-SpaceX merger a 'good idea' as SpaceX posts first profit as a public company
TSLA•SpaceX reported third-quarter net income of $4.4 billion, compared with a $1.1 billion loss a year earlier, as revenue rose 161% to $14.58 billion. Elon Musk said Tesla and SpaceX had formed special committees to discuss a merger, calling it a “good idea.”
1. Profit and revenue growth
SpaceX posted net income of $4.4 billion for the third quarter, compared with a loss of $1.1 billion a year earlier. Revenue climbed 161% to $14.58 billion. Adjusted earnings were 45 cents per share, above analysts’ 13-cent average estimate.
2. AI drives expansion
AI revenue rose almost tenfold to $7.56 billion, mostly from renting data-center capacity. Capital spending nearly tripled to $19.6 billion, including $16.4 billion for AI; the company expects fourth-quarter capital expenditures of $35 billion to $40 billion. CFO Bret Johnsen reiterated that SpaceX expects annual recurring revenue of about $100 billion by the end of 2026.
3. Merger talks and Starlink
Musk said SpaceX and Tesla had formed special committees to discuss a possible merger, adding that shareholders would ultimately need to approve a deal. Starlink had 13.6 million subscribers in the quarter, above analysts’ 12.19 million estimate, while average monthly revenue per subscriber fell to $69 from $99 in 2023.
