SpaceX and Tesla have formed special committees of independent directors to explore a merger after SpaceX posted a $4.4 billion quarterly profit.
The big picture: A combination would put rockets, satellite internet, electric vehicles and a fast-growing AI business under one public company controlled by Elon Musk. Both boards have assigned independent directors to discuss the idea.
- SpaceX earned $4.4 billion, or 35 cents a share, in the three months through September. Revenue rose 161% to $14.6 billion, and shares climbed 7.5% after hours.
- "Some people out there assume that a SpaceX and Tesla merger is a certainty," Musk told analysts. "I think that would be overstating it."
Between the lines: SpaceX says AI became its largest business by revenue in the quarter, while Starlink remained its biggest profit generator. Tesla already uses SpaceX technology in the newly revealed Roadster concept.
Yes, but: Capital spending reached $19.6 billion last quarter, nearly triple the year-earlier figure. SpaceX expects $35 billion to $40 billion of spending in the current quarter as it builds projects meant to compete with Anthropic and others.
What's next: Tesla reports quarterly results Wednesday. SpaceX also plans a Starship launch next month that will try to catch both the booster and ship with mechanical arms, a test of full reusability.
Why it matters: A merger could create one of the world's largest technology companies and give Tesla investors direct exposure to Starlink, launches and SpaceX's AI revenue. The committees make the idea more concrete, while Musk's caveat keeps a deal far from assured.
