Elon Musk officially confirmed that SpaceX and Tesla have formed independent special committees to evaluate a potential merger, sending SpaceX shares up 8% and Tesla shares up 1.8% in extended trading. The announcement came alongside SpaceX’s first profitable quarter as a public company, driven by explosive AI revenue.
📌 Key Financial Figures & M&A Highlights:
• Special Committees Formed: Independent board committees are negotiating potential transaction terms for a merger—potentially featuring SpaceX acquiring Tesla—to synergize AI software, chip design (Terafab JV), robotics, and compute infrastructure.
• SpaceX Q3 Profit Spike: SpaceX posted $4.4 billion in net income (smashing $1.57B estimates) vs. a $1.1B loss a year ago. Adjusted EPS came in at $0.45 (vs. $0.13 expected).
• 161% Revenue Surge ($14.58B): Driven by an almost 10x surge in AI revenue to $7.56 billion from renting data-center capacity to Anthropic, Google, and Reflection AI.
• $500B to $1T ARR Target: Musk projected SpaceX annual recurring revenue reaching $500B–$1T by end-2027. Q4 Capex is projected at $35B–$40B as compute spending scales.
• Starlink Subscriber Growth: Reached 13.6 million subscribers (beating 12.19M estimates), though global expansion lowered average monthly revenue per user (ARPU) to $69.
• Terafab Semiconductor Timeline: Joint venture aims to produce its first test chip by May/June 2027, targeting volume production by Q3 2028.
💡 Market Takeaway: SpaceX is rapidly transforming into a mega-scale AI cloud and compute infrastructure provider, with a prospective Tesla union poised to consolidate Musk’s hardware, autonomous robotics, and supercomputing capabilities under one umbrella.