Elon Musk has backed exploring a possible merger between SpaceX and Tesla, while the rocket and artificial intelligence company reported its first quarterly profit since becoming publicly traded. The proposal remains at an early stage, with independent committees still considering whether any transaction would be practical or acceptable to shareholders.
The development is primarily a US corporate and technology story rather than an EU institutional decision, but it has wider relevance for European investors, technology companies, satellite-internet users and policymakers tracking the growth of artificial intelligence infrastructure.
What Musk said about a SpaceX–Tesla merger
Speaking during an analyst call, Musk said a combination of SpaceX and Tesla could be beneficial, although he warned that treating a merger as certain would be premature. He described the discussions as sensitive and said the two companies had established special committees of independent directors at shareholders’ request.
Musk said he could not participate directly in the committees’ negotiations because he has leadership and ownership interests in both businesses. He is chief executive of Tesla and SpaceX, and also serves as SpaceX’s chairman and chief technology officer.
The committees have not agreed terms. Any transaction would also require approval from a majority of all Tesla shares, rather than simply a majority of shares voted at a meeting. Musk described that requirement as a significant hurdle.
Potential areas of cooperation
Musk said the companies could work more closely in several technology fields, including:
- Artificial intelligence software
- Specialised chip design
- Robotics
- Space-based computing
The comments sent SpaceX shares almost 5% higher in after-hours trading, according to the source report. That market reaction does not indicate that a merger has been approved or that an agreement will necessarily be reached.
SpaceX reports a sharp rise in revenue
SpaceX reported net income of $4.4 billion (€3.8 billion) for the July-to-September quarter, compared with a net loss of $1.1 billion (€950 million) in the same period a year earlier. Revenue increased 161% to $14.6 billion (€12.6 billion).
The result marks a significant change from the company’s first report after its Nasdaq listing. In the second quarter, SpaceX recorded revenue of $7.8 billion (€6.7 billion) and a net loss of $541 million (€466 million).
SpaceX began trading on Nasdaq on 12 June following an initial public offering priced at $135 per share. The IPO raised approximately $85.7 billion (€73.9 billion), according to the information provided.
AI and cloud computing drive the turnaround
The company’s artificial intelligence division, referred to by SpaceX as “Super Intelligence”, generated $7.6 billion (€6.6 billion) in revenue during the quarter. That was more than nine times the figure recorded a year earlier and made the division SpaceX’s largest source of sales, ahead of Starlink.
SpaceX attributed the growth to new cloud-computing agreements, broader use of the Grok chatbot and its acquisition of Cursor, an AI coding start-up. The AI division reported operating profit of $431 million (€371 million), compared with an operating loss of $1.7 billion (€1.5 billion) a year earlier.
Despite the improvement, spending remains substantial. SpaceX invested $19.6 billion (€16.9 billion) during the quarter, including $16.4 billion (€14.1 billion) in artificial intelligence. Capital spending for the first nine months of the year reached $48 billion (€41.4 billion).
The company said its computing capacity had grown to 1.7 gigawatts from 0.6 gigawatts a year earlier. Musk said he was fairly confident that an additional 10 gigawatts could be brought online during 2027, while identifying power, cooling and electrical equipment as constraints.
Starlink continues to expand
Starlink’s revenue rose 69% to $5.2 billion (€4.5 billion), while the number of consumer subscribers reached 13.6 million. However, average monthly revenue per consumer declined to $69 (€59), from $83 (€72) a year earlier.
SpaceX also completed the first revenue-generating flight of Starship, the large rocket central to the company’s plans for expanding satellite deployment and pursuing longer-term Mars ambitions. The flight carried 26 next-generation Starlink satellites into orbit.
What happens next?
The immediate next step is for the independent committees at SpaceX and Tesla to examine whether a merger would serve shareholders and to consider possible terms. No deal has been announced, and the process could end without an agreement.
If a proposal were formally developed, it would need to pass the relevant corporate approval procedures, including the stated shareholder threshold for Tesla. Regulatory, governance and conflict-of-interest questions would also be important because of Musk’s senior roles and ownership positions in both companies.
Why the proposal matters beyond the companies
A merger could combine electric vehicles, robotics, satellite communications, launch services and AI infrastructure within one corporate group. That would raise questions about competition, corporate governance, capital allocation and the control of strategically important technologies.
For Europe, the implications would mainly be indirect. European consumers and businesses already interact with satellite connectivity and electric-vehicle markets, while European policymakers are developing rules covering AI, data, competition and digital infrastructure. Any future transaction could therefore attract attention from investors and regulators beyond the United States, depending on its structure and market effects.
Conclusion
The possible SpaceX–Tesla merger is currently an exploratory corporate proposal, not a completed transaction. Musk has expressed support, but independent committees must assess the idea and Tesla shareholders would face a demanding approval process. Meanwhile, SpaceX’s first quarterly profit and rapid expansion in AI cloud computing underline why the company has become an increasingly important force across technology, communications and space.