SpaceX revenue jumps 161% as Musk says boards weigh Tesla merger
SpaceX said its third-quarter revenue rose 161% to $14.6 billion, according to its earnings release. Elon Musk said Tesla and SpaceX boards set up panels of independent directors to discuss a merger, CNBC reported. SpaceX stock was up 8.73% in premarket trading as of 4:09 AM Eastern time, CNBC data showed.
SpaceX said its third-quarter revenue rose 161% from a year earlier to $14.6 billion, and it reported net income of $4.4 billion compared with a net loss of $1.1 billion a year earlier, according to its earnings release filed with the Securities and Exchange Commission. Analysts had expected $12.72 billion in revenue, according to LSEG data cited by CNBC.
The company's AI business, which it calls Super Intelligence, has become its largest, with revenue up ninefold to $7.56 billion, CNBC reported. Revenue from its Connectivity segment, which includes Starlink, rose 69% to $5.25 billion, and Starlink subscribers grew to 13.6 million, according to CNBC. Launch revenue rose to $1.77 billion.
On the earnings call, Musk said the Tesla and SpaceX boards had formed special committees to discuss a merger "at the request of shareholders" and that they "consist of independent directors," CNBC reported. "Do I think it would be a good idea? Yes," Musk said. "But at the end of the day, the shareholders have to be supportive of this." He said a deal would need "a 50% vote of all shares" on the Tesla side, according to CNBC. Musk said he could not take part in the talks because he is a "conflicted party."
Chief financial officer Bret Johnsen forecast first-quarter 2027 revenue of $33 billion to $37 billion, above the average analyst estimate of $22.2 billion, CNBC reported.
SpaceX shares rose about 8% in extended trading Tuesday, CNBC reported. In premarket trading Wednesday, they were at $160.69, up 8.73%, as of 4:09 AM Eastern time, according to CNBC market data. Tesla reports its third-quarter results after the market closes Wednesday, CNBC reported.
SpaceX went public in June, CNBC reported. Of $19.6 billion in capital spending in the quarter, more than $16.4 billion went to the AI business, according to CNBC.
What we know: SpaceX's revenue jumped 161%, and Musk says both companies' boards have formed committees to discuss a merger.
What we don't: Whether the committees will propose a deal. Only CNBC has reported this independently so far, and NewsHabit hasn't seen independent confirmation.
Where outlets agree The financial results come from SpaceX's earnings release, which CNBC also reported along with Musk's remarks on the earnings call.
Where they differ SpaceX's earnings release does not mention Tesla, while CNBC reports Musk said on the call that both companies' boards had formed committees to discuss a merger.