SpaceX Posts $4.4B Profit, Musk Hints at Tesla Merger

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SpaceX has reported a significant quarterly profit of $4.4 billion, surpassing Wall Street expectations, as its satellite communications and artificial intelligence businesses saw substantial growth. The company, led by Elon Musk, reversed a year-ago loss and recorded revenue of $14.6 billion, a 161% increase.

Musk Hints at Potential Tesla Merger

During a conference call with analysts, Musk suggested that a merger with Tesla, his electric car company, might be in the works. Both companies have formed special committees of independent directors to discuss the possibility, though Musk downplayed the chances of an imminent deal. ‘Some people out there assume that a SpaceX and Tesla merger is a certainty,’ he said. ‘I think that would be overstating it.’

The AI business has become SpaceX’s largest by revenue in the third quarter, although the Starlink satellite service remains the biggest profit generator. Analyst Dan Ives noted that ‘this is just what (Wall) Street wanted,’ highlighting the positive impact of the results.

Starship Launch and Reusability Goals

Musk also announced plans for next month’s Starship rocket launch, where SpaceX will attempt to use mechanical arms to capture both the booster and ship upon return to base. This step is crucial for demonstrating the reusability of the massive spacecraft. ‘The only way that we can extend consciousness beyond Earth on a sustained basis is with a fully reusable orbital launch vehicle,’ Musk said, calling the attempt a ‘massive technology milestone.’

SpaceX aims to establish a regular launch pattern for Starship in preparation for NASA’s upcoming lunar missions. The company already has significant federal government contracts, and House Democrats have called for investigations into those contracts and Musk’s work with the Department of Government Efficiency. Musk has spent $276 million since July in support of Republican candidates.

Political and Regulatory Scrutiny

Recent reports have highlighted Musk’s involvement in slowing down satellite communications speeds for Ukraine, which was linked to a deal with President Donald Trump for more diesel oil from Russia. While both Trump and Musk have denied responsibility for the slowdown, the situation has drawn political attention. As midterm elections approach, Musk has promised to give one share of SpaceX to ‘every kid in America’ next year, though details on the distribution remain unclear.

SpaceX shares have faced pressure due to concerns about high capital expenditures, with the company spending $19.6 billion last quarter, nearly triple the figure from a year earlier. The stock closed at $147.79, down from its IPO peak near $201, which once made Musk the world’s first trillionaire. However, his net worth has since dropped to $925 billion, according to Forbes.

Source: OANN