SpaceX Posts Q3 Revenue Beat as Musk Details Tesla Merger Committees

3-line summary

• SpaceX reported third-quarter revenue of $14.6 billion, up 161% year-over-year and above the $12.87 billion analyst consensus, with net income of $4.4 billion; on the earnings call, CEO Elon Musk confirmed that SpaceX and Tesla have each formed independent special committees to evaluate a potential merger, with talks still at an early stage and no agreement guaranteed.
• Musk, who is conflicted as CEO of both companies, described the process as an "odd kabuki dance where two groups of people are talking and I can't be in the conversation," and cited potential synergies in superintelligence software, chip design, Terafab, robotics, and orbital transport/connectivity via the Starmind satellite constellation; he reiterated that at least 50% of Tesla's outstanding shares would need to approve a deal, calling it "quite a high hurdle to achieve."
• Barclays analyst Dan Levy said SpaceX could emerge as the primary acquirer in an all-stock deal, which would let Musk consolidate voting control over AI-linked businesses such as Optimus and Grok; Deepwater Asset Management's Gene Munster said the odds of a merger "just inched up," estimating a 95% chance of a deal within two years. The developments come after SpaceX acquired xAI in February and completed its IPO in June.

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