Musk calls Tesla-SpaceX merger a 'good idea' as SpaceX posts first profit as a public company
SPCX•SpaceX posted net income of $4.4 billion in the third quarter, compared with a $1.1 billion loss a year earlier, as revenue rose 161% to $14.58 billion. Musk said Tesla and SpaceX had formed special committees to discuss a merger.
1. Merger discussions confirmed
Elon Musk said Tesla and SpaceX had formed special committees to discuss a possible merger, calling the idea “a good idea.” He said he could not participate in the committees’ discussions because he was a conflicted party, and that shareholders would ultimately need to approve a deal.
2. AI revenue surges
SpaceX revenue climbed 161% to $14.58 billion in the three months ended September 30. AI revenue rose to $7.56 billion, mostly from renting data-center capacity, while capital spending nearly tripled to $19.6 billion; $16.4 billion of that spending went to AI. The company reported net income of $4.4 billion, against a year-earlier net loss of $1.1 billion.
3. Starlink growth and spending
Starlink reached 13.6 million subscribers, above analysts’ 12.19 million estimate. Average monthly revenue per subscriber was $69 in the quarter, down from $99 in 2023. SpaceX expects $35 billion to $40 billion in capital expenditures in the fourth quarter, and its CFO reiterated a target of about $100 billion in annual recurring revenue by the end of 2026.
