SpaceX stock soars on blowout earnings that see revenue surge 161% - as Musk talks Tesla merger

Key Points:

• SpaceX reported a 161% increase in quarterly revenue to $14.58 billion, driven primarily by its AI division, which surpassed its Starlink internet service as the largest revenue source, contributing $7.6 billion compared to Starlink’s $5.2 billion.
• The company swung to a net profit of $4.4 billion from a previous loss and saw adjusted EBITDA rise to $8.8 billion, with shares rising 4% in after-hours trading, valuing SpaceX at approximately $2.01 trillion.
• Elon Musk revealed that special committees from SpaceX and Tesla are exploring a potential merger at shareholders’ request, though he cannot participate due to conflicts of interest but expressed support for the deal.
• SpaceX’s AI business growth is fueled by leasing computing capacity, making it the fastest-growing revenue segment, while Starlink continues to expand its subscriber base and operating income, with plans to significantly increase bandwidth through new satellites.
• The company invested heavily in capital expenditures, spending $19.6 billion in Q3 mainly on AI infrastructure, and plans to increase Starship launch frequency to weekly in the first half of next year, aiming for twice weekly launches later.