SpaceX posts $561 million gain from Boring Co. stake, Musk hints at Tesla merger

Investment gain accounts for more than half of quarterly other income; Boring Co. raises $3 billion at $23 billion valuation

By LineZotpaper

Published23 October 2026

Read Time2 min

Sources2 outlets

SpaceX reported on Thursday that its stake in Elon Musk’s The Boring Company generated a $561 million investment gain during the third quarter, accounting for more than half of the space company’s “other income” and helping lift net income to just over $4 billion. During SpaceX’s earnings call, Musk said he thought it would be a “good idea” for SpaceX and Tesla to merge and confirmed that both companies have formed special committees to discuss a potential transaction.

The gain, disclosed in a quarterly filing with the Securities and Exchange Commission, comes as The Boring Co. pursues underground tunnel projects in Las Vegas, Nashville, and the United Arab Emirates. The only tunnels currently open for public use are the Las Vegas Convention Center Loop, where passengers travel in Tesla vehicles between the convention center and casino resorts. The company’s proposed Music City Loop in Nashville, which would connect downtown to the airport, has drawn political controversy and raised new safety concerns over sinkhole risks this week. In the UAE, Boring Co. plans to build more than 150 kilometers of tunnels, including the Dubai Loop announced last year.

Last month, The Boring Co. raised $3 billion at a $23 billion valuation, with backing from the UAE and other longtime Musk supporters. SpaceX also purchased $151 million worth of Tesla’s Megapack energy storage systems during the quarter. On the earnings call, Musk suggested a merger between SpaceX and Tesla, noting that both companies had formed special committees to discuss a potential transaction.

Analysis

Why This Matters

The investment gain highlights the financial interplay between Musk’s companies and Boring Co.’s rapid valuation growth, which has risen to $23 billion.
A potential merger between SpaceX and Tesla would reshape the space and electric vehicle sectors and raise governance and antitrust questions.
Boring Co.’s accelerating tunnel projects in multiple cities signal growing interest in alternative transit but also invite increased regulatory and safety scrutiny.

Background

The Boring Co. was created inside SpaceX in 2017 and spun out a year later. Its mission is to “revolutionize transportation” through underground tunnels, with stations where passengers can board and exit. To date, only the Las Vegas Convention Center Loop is operational. The company has announced about a dozen city projects, but most remain in planning stages. Its recent $3 billion fundraising round valued it at $23 billion.

Key Perspectives

SpaceX: The $561 million gain boosted quarterly net income and demonstrates the value of its early investment. Musk’s merger suggestion points toward potential deeper integration of the companies. The Boring Co.: With a $23 billion valuation and projects in Nashville and Dubai, it aims to become a major infrastructure player but has yet to prove its technology at scale beyond Las Vegas. Critics and regulators: Safety concerns over sinkhole risks and partisan fighting over Nashville’s fast-tracked project highlight skepticism. A Musk-engineered merger could attract additional antitrust and governance attention.

What to Watch

Whether the special committees recommend a SpaceX/Tesla merger and what terms might emerge.
Progress on the Nashville Music City Loop and any further safety incidents.
Regulatory responses in the U.S. and UAE to Boring Co.’s tunneling plans and the potential merger.

Sources

SpaceX records $561 million investment gain from stake in Elon Musk's Boring Co. · Tech
SpaceX records $561 million investment gain from stake in Elon Musk's Boring Co. · US Top News and Analysis

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12 claims in this story checked against 1 source: 12 supported.

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SupportedSpaceX’s stake in The Boring Company generated a $561 million gain in the third quarter.Tech: “SpaceX said on Thursday that its stake in Elon Musk's The Boring Co. netted the company an investment gain of $561 million during the third quarter.”
SupportedMusk said a SpaceX–Tesla merger would be a “good idea.”Tech: “Musk said on SpaceX's earnings call on Tuesday that he thinks it would be a "good idea" for the two companies to merge”
SupportedSpaceX’s gain accounted for more than half of its quarterly other income.Tech: “The gain accounted for more than half of SpaceX's "other income" in the period”
SupportedThe Boring Company raised $3 billion at a $23 billion valuation.Tech: “Last month, Boring Co. raised $3 billion at a $23 billion valuation”
SupportedSpaceX’s net income was just over $4 billion.Tech: “boosted its net income, which landed at just over $4 billion”
SupportedMusk said both companies had formed special committees to discuss a potential transaction.Tech: “and said they've both created special committees to discuss a potential transaction.”
SupportedSpaceX disclosed the gain in a quarterly filing with the SEC.Tech: “the company said in its quarterly financial filing with the Securities and Exchange Commission.”
SupportedThe only Boring Company tunnels currently open to the public are the Las Vegas Convention Center Loop.Tech: “its only tunnels currently open for public use are in Las Vegas, where passengers can travel in Tesla vehicles between the downtown convention center and various casino resorts using its Las Vegas Convention Center Loop.”
SupportedThe proposed Music City Loop is designed to carry passengers between downtown Nashville and the airport.Tech: “The Music City Loop, as it's known, is being designed to carry paying passengers between downtown and the airport in Tesla vehicles.”
SupportedThe Music City Loop drew new safety concerns over sinkhole risks this week.Tech: “has drawn new safety concerns over sinkhole risks this week.”
SupportedThe Boring Company plans to build more than 150 kilometers of tunnels in the UAE, including the Dubai Loop announced last year.Tech: “In the UAE, Boring Co. plans to build over 150 kilometers (93 miles) of tunnels, including a project announced in February of last year, the Dubai Loop.”
SupportedSpaceX purchased $151 million worth of Tesla Megapack systems during the quarter.Tech: “SpaceX also said in Thursday's filing that it purchased $151 million worth of Tesla's Megapack energy storage systems during the quarter.”