SpaceX touts possible Tesla merger after profits soar

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Set us as preferred SpaceX reported its first profit as a public company Tuesday, recording $4.4 billion in net income as well as large third-quarter revenue gains, reflecting a trifecta of growth in its launch, communications and artificial intelligence businesses.Founder Elon Musk also disclosed that the company and electric automaker Tesla have formed special committees to explore a potential merger, which would rank as the largest of all time.“I do think there’s a lot of merit to combining the companies,” Musk, the chief executive officer of both companies, said on SpaceX’s earnings webcast.“There’s a lot to be gained from cooperating on developing superintelligence software.” Business After years of delays, Elon Musk demonstrated the new Tesla Roadster in Texas on Thursday.

Production won’t actually begin until 2028.Musk said he isn’t participating in the committee discussions because he is a conflicted party, and that the committees have yet to agree on terms.There has been widespread speculation on Wall Street of such a move.The news sent SpaceX shares up nearly 8%, or $1.71, to $159.50 in after hours trading.

Tesla climbed 1.2%.The disclosure followed a stellar earnings announcement by the Texas rocket, internet and AI company that easily beat analysts net-income estimates of $1.88 billion for the quarter ended Sept.30.

It was a swing from a $1.1 billion net loss in the prior year’s third quarter.Revenues totaled $14.6 billion, nearly double the $7.8 billion second quarter figure.Capital expenditures hit $19.59 billion, mainly for artificial intelligence computing, where SpaceX is competing with OpenAi, Anthropic and other AI leaders.“Our business is experiencing extremely strong momentum across all three segments,” said President Gywnne Shotwell, in an investors presentation that was live ...