Musk says SpaceX-Tesla merger is 'a good idea' as companies form deal committees
SPCX•Elon Musk said SpaceX and Tesla formed independent committees to discuss a merger, which he called “a good idea,” but said they had not agreed on terms. SpaceX reported third-quarter revenue of $14.58 billion and net income of $4.4 billion; AI revenue rose to $7.56 billion.
1. Merger discussions
Musk said SpaceX and Tesla had formed special committees at shareholders’ request to discuss a possible merger. He said the committees had not agreed on transaction terms and may never do so, and that he was not participating in their discussions because he was a conflicted party. SpaceX shares rose 8% in extended trading after his comments, while Tesla shares rose 1.8%.
2. SpaceX results
SpaceX’s revenue climbed 161% to $14.58 billion in the third quarter, and net income was $4.4 billion, compared with a loss of $1.1 billion a year earlier. AI revenue increased nearly tenfold to $7.56 billion, mostly from renting data-center capacity. Capital expenses nearly tripled to $19.6 billion.
3. AI and Starlink
Musk said he expected annual recurring revenue of $500 billion to $1 trillion by the end of 2027. SpaceX expects fourth-quarter capital expenditure of $35 billion to $40 billion. Starlink had 13.6 million subscribers in the third quarter, above analysts’ expectation of 12.19 million, while average monthly revenue per subscriber was $69, down from $99 in 2023.
