SpaceX Stock Jumps 10% on First Post-IPO Profit, Tesla Merger Explored

Space Exploration Technologies (NASDAQ: SPCX) shares surged 9.66% to $162.06 in pre-market trading Wednesday after the company reported its first quarterly profit since its June public listing and disclosed that independent committees at SpaceX and Tesla are evaluating a possible merger.

SpaceX reported third-quarter net income of $4.4 billion, or $0.35 per diluted share, after posting a $541 million loss in the second quarter and a $1.1 billion loss a year earlier. Revenue climbed 161% year over year to $14.58 billion, while operating income reached $2.79 billion, compared with a $273 million operating loss in the prior-year quarter.

Net income exceeded operating income by $1.613 billion, equivalent to 36.6% of reported profit. The difference reflected $1.025 billion in other income (including $561 million classified as related-party income), $198 million in net interest income and a $390 million income-tax benefit.

Adjusted EBITDA, a company-defined non-GAAP measure that excludes depreciation, amortization and share-based compensation, among other items, rose 306% to $8.81 billion.

Chief Financial Officer Bret Johnsen projected total company revenue of $33 billion to $37 billion for the first quarter of 2027, citing greater visibility into its computing-services contract pipeline.

Musk Says Tesla Merger Committees Have Not Agreed on Terms

During Tuesday’s earnings call, CEO Elon Musk said shareholders requested independent director committees at SpaceX and Tesla to evaluate a possible merger.

Musk, who leads SpaceX and Tesla, said he cannot participate in either committee’s discussions because of his conflicting interests.

He expressed support for a potential combination, citing opportunities to cooperate in artificial intelligence, chip design, robotics and connectivity. However, Musk cautioned that a merger was not guaranteed and said the committees had not reached agreement on any transaction terms.

He also identified Tesla shareholder approval as a major hurdle, saying a deal would need support from holders of at least 50% of all Tesla shares outstanding, rather than merely a majority of votes cast.

Super Intelligence Becomes SpaceX’s Largest Revenue Segment

SpaceX’s Super Intelligence (SI) division generated $7.56 billion in third-quarter revenue, up 830% from $813 million a year earlier. The business accounted for nearly 52% of total revenue, supported by new cloud-service agreements, the acquisition of AI coding company Cursor, and increased adoption of Grok.

Although SI reported higher revenue, its operating income was lower than that of SpaceX’s Connectivity division. SI reported $431 million in operating income, including $1.2 billion in share-based compensation expense linked to the Cursor acquisition. Connectivity generated $2.37 billion in operating income on $5.25 billion in revenue.

Connectivity revenue rose 69% year over year, while Starlink’s consumer subscriber base reached 13.6 million at the end of September.

SpaceX also reported $19.59 billion in quarterly capital expenditures, including $16.44 billion allocated to Super Intelligence. Johnsen projected fourth-quarter capital spending of $35 billion to $40 billion as additional computing infrastructure comes online.

SpaceX Stock Rebounds as Tokenized Shares Gain 11%

At the pre-market price of $162.06, SpaceX shares were just 0.8% below their October 12 closing price of $163.42, after falling to $147.79 by Tuesday’s close. The stock remained 28.2% below its June intraday high of $225.64 but stood approximately 20% above its $135 initial public offering price.

Separately, SpaceX Tokenized bStocks (SPCXB) traded at $161.94, up 10.56% over the preceding 24 hours, according to CoinMarketCap. The tokenized instrument is distinct from SpaceX’s Nasdaq-listed shares, and its 24-hour percentage change covers a different trading period.