SpaceX shares jump 10% on record Q3 revenue, Musk hints at Tesla merger

Space company posts $14.6 billion revenue, up 161% year-over-year, with AI-driven 'Super Intelligence' unit the largest business segment

By LineZotpaper

Published21 October 2026

Read Time2 min

SpaceX shares rose 10.4% in premarket trading Wednesday after the company reported third-quarter revenue of $14.6 billion, up 161% from a year earlier, beating analyst estimates, while owner Elon Musk floated a potential merger with Tesla.

SpaceX, which listed on the Nasdaq in June in the largest IPO ever, reported third-quarter revenue of $14.6 billion, beating the LSEG consensus estimate of $12.72 billion. Operating income came in at $2.8 billion, and net income reached $4.4 billion, a sharp turnaround from a year-earlier net loss of $1.05 billion.

On the earnings call, Musk said he was considering a combination with Tesla, which would mark the largest merger in history, and that both companies' boards had formed committees to discuss a consolidation. "I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating," Musk said.

The company's CFO, Bret Johnson, credited the results to "continued momentum in Connectivity and a clear inflection in our Super Intelligence business." Recurring revenue from Starlink and expansion of its Super Intelligence (SI) infrastructure drove growth. The SI segment, now SpaceX's largest business unit, saw revenue soar to $7.56 billion from $813 million in the same quarter last year.

SpaceX forecast first-quarter 2027 revenue between $33 billion and $37 billion, well above the average analyst estimate of $22.2 billion, per LSEG.

Tesla is scheduled to report third-quarter earnings after the close Wednesday. Tesla shares rose 2.1% in premarket trading, and other space stocks, including Rocket Lab, Intuitive Machines, and AST SpaceMobile, also traded higher.

Truist Securities analysts said the results support the bull case for AI cloud providers, noting demand appears "insatiable" and that SpaceX could rent out its capacity several times over. They said CoreWeave and Nebius are set to benefit as "pricing power will more than offset higher rates." Shares of cloud providers including Nebius, CoreWeave, Iren, and Applied Digital rose more than 3% in premarket trading following Musk's comments.

Analysis

Why This Matters

SpaceX's strong revenue growth and profit turnaround signal the company's financial maturity following its blockbuster IPO, making it a major force in both space and AI infrastructure.
Musk's mention of a SpaceX-Tesla merger, while preliminary, could reshape two of the most valuable companies in the world, with implications for shareholders, regulators, and the broader tech and auto sectors.
The results offer a key early data point for AI cloud providers, suggesting robust demand and pricing power that could boost the entire sector.

Background

SpaceX, founded by Musk, is best known for its rockets and Starlink satellite internet service. This year, the company has expanded into AI infrastructure, rebranding its AI offerings as "Super Intelligence." The June IPO was the largest on record, raising billions and making SpaceX a publicly traded company alongside Tesla. The potential merger talks are still in early stages, with board committees formed but no formal proposal announced.

Key Perspectives

Elon Musk and SpaceX leadership: They see the merger as offering significant benefits, especially given the "superintelligence singularity" they believe the companies are approaching. Musk emphasizes cooperation and synergy between the two firms. Tesla shareholders and analysts: Some may view a merger with SpaceX as a way to accelerate Tesla's AI capabilities, but others could worry about valuation, integration risks, and the distraction from Tesla's core automotive business. The market's premarket reaction for Tesla was positive but muted. AI cloud investors and analysts: Truist Securities and others see SpaceX's results as evidence of "insatiable" demand for AI compute, justifying higher spending and supporting companies like CoreWeave and Nebius. They expect pricing power to offset financing concerns.

What to Watch

Tesla's third-quarter earnings report later Wednesday will provide clues on whether Musk will push the merger forward and how Tesla's own AI investments are performing.
Any formal announcement about merger negotiations, including the board committees' progress, will be a major market event.
Further quarterly data from SpaceX and peers in AI cloud could confirm whether the demand boom continues or if the forecast for early 2027 holds.

Sources

SpaceX up 10% in premarket after earnings beat and Musk hints at Tesla tie-up · US Top News and Analysis

Checked

12 claims in this story checked against 1 source: 11 supported.

Show each claim

Partly supportedSpaceX reported record third-quarter revenue of $14.6 billion.US Top News and Analysis: “reported third-quarter revenue on Tuesday of $14.6 billion, up 161% from the previous year”
SupportedSpaceX shares rose 10.4% in premarket trading Wednesday after its earnings report.US Top News and Analysis: “SpaceX shares rose 10.4% before the markets opened on Wednesday.”
SupportedMusk said he was considering a combination of SpaceX and Tesla.US Top News and Analysis: “On the earnings call, Musk said he's considering a combination with Tesla”
SupportedThe boards of both companies formed committees to discuss a consolidation.US Top News and Analysis: “the boards of both companies have created specific committees to discuss a consolidation.”
SupportedMusk said, “I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating.”US Top News and Analysis: ““I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating,” Musk said on the call.”
SupportedSpaceX's third-quarter revenue was $14.6 billion, up 161% year over year, and above LSEG's $12.72 billion consensus estimate.US Top News and Analysis: “reported third-quarter revenue on Tuesday of $14.6 billion, up 161% from the previous year, and beating LSEG consensus estimates of $12.72 billion.”
SupportedOperating income was $2.8 billion, and net income was $4.4 billion, compared with a $1.05 billion net loss a year earlier.US Top News and Analysis: “its operating income from operations came in at $2.8 billion, with net income of $4.4 billion, after reporting a net loss of $1.05 billion in the same period a year earlier.”
SupportedCFO Bret Johnson attributed the results to “continued momentum in Connectivity and a clear inflection in our Super Intelligence business.”US Top News and Analysis: ““Revenue grew an impressive 161% year-over-year, fueled by continued momentum in Connectivity and a clear inflection in our Super Intelligence business,” SpaceX's Chief Financial Officer Bret Johnson said in the earnings release.”
SupportedJohnson said recurring Starlink revenue and expansion of Super Intelligence infrastructure helped drive the results.US Top News and Analysis: “Johnson pinned the strong results on recurring revenue from its satellite internet business, Starlink, and significant expansion of its Super Intelligence [SI] infrastructure.”
SupportedThe Super Intelligence unit was SpaceX's largest business unit, with revenue of $7.56 billion versus $813 million a year earlier.US Top News and Analysis: “The segment is its largest business unit, with revenue soaring ninefold to $7.56 billion from $813 million in the same quarter last year.”
SupportedSpaceX forecast first-quarter 2027 revenue of $33 billion to $37 billion, above the $22.2 billion average analyst estimate.US Top News and Analysis: “SpaceX forecasts first-quarter 2027 revenue between $33 billion and $37 billion, beating the average analyst estimate of $22.2 billion, per LSEG.”
SupportedTruist analysts said demand appeared “insatiable” and that pricing power would more than offset higher rates.US Top News and Analysis: “They explained that demand appears “insatiable,” with SpaceX noting that it could rent out its capacity several times over. The analysts said Coreweave and Nebius are set to benefit and capture demand as “pricing power will more than offset higher rates.””