SpaceX delivered a sharp earnings surprise and opened the door to a deal that could reshape Elon Musk's corporate empire. The company reported third-quarter net income of US$4.4 billion on revenue of US$14.6 billion, while Musk said independent board committees at SpaceX and Tesla are discussing a possible combination.
The merger remains uncertain. Musk told investors it would be an overstatement to treat a transaction as inevitable, according to the Associated Press. For markets, the immediate story is the scale of SpaceX's profit swing and the extraordinary cost of expanding its artificial-intelligence infrastructure.
SpaceX Profit Reaches US$4.4 Billion
SpaceX's official third-quarter filing showed revenue rising 161% from a year earlier to US$14.6 billion. Net income reversed a US$1.1 billion loss in the comparable period, producing earnings of 35 cents a share.
The result was also a major sequential improvement. SpaceX had reported a US$541 million loss in the second quarter, its first reporting period after becoming a listed company. Revenue nearly doubled from US$7.8 billion in that quarter.
Axios reported that SpaceX shares gained in after-hours trading following the results. The company hosted its official earnings webcast after the market close on 20 October.
All three operating divisions grew, but the Super Intelligence unit provided the biggest change. AI revenue reached about US$7.6 billion, making it the company's largest segment by sales. Starlink and other connectivity services generated roughly US$5.2 billion and remained the largest source of operating profit.
AI Growth Comes With a US$19.6 Billion Spending Bill
The earnings beat carries a substantial caveat. Capital expenditure reached US$19.6 billion in the quarter, almost three times the year-earlier level. About US$16.4 billion went into the Super Intelligence business, according to the company filing.
That investment level places SpaceX at the centre of the market debate over AI returns. BullBuzz recently covered Microsoft's exit from an Nscale UK data-centre agreement, where power delays complicated expansion plans. SpaceX faces a different execution challenge, but both stories show how electricity, chips and financing now shape the AI race.
SpaceX forecast capital spending of US$35 billion to US$40 billion in the current quarter. That figure makes cash generation and the profitability of new compute contracts central to the next earnings report.
Musk Says Tesla Merger Is Being Discussed
Musk said SpaceX and Tesla had formed special committees of independent directors to discuss a possible merger at shareholders' request. He described a combination as a sensible idea, while stressing that there was no guarantee it would happen.
The governance detail matters because Musk leads both companies and any transaction would involve related-party concerns. Tesla's annual filing says its audit committee must review transactions in which the company participates and a related person has a material interest. Tesla also invested about US$2 billion in SpaceX shares in March 2026.
A merger could bring launch, satellite, AI, robotics, energy storage and vehicle operations under one listed group. It could also make valuation, capital allocation and minority-shareholder protections harder to assess. Until either board announces terms, investors should treat the discussion as preliminary.
Why the SpaceX Earnings Matter Across Asia
Asia's semiconductor and data-centre supply chains are directly exposed to the scale of AI infrastructure spending. BullBuzz's ASML earnings report showed customers already discussing equipment orders extending toward 2030. SpaceX's latest capex plan reinforces the long-duration demand argument, while also highlighting the risk of overspending.
Japan is pursuing the same opportunity through proposed local infrastructure. NTT Data's talks over an Anthropic data centre illustrate how AI demand is spreading beyond US hyperscalers. Malaysia, meanwhile, has told data-centre investors to fund grid upgrades where projects require new transmission capacity.
Investors will now watch SpaceX's share reaction, the pace of AI contract growth and any formal announcement from the two board committees. The US$4.4 billion profit is confirmed; a Tesla-SpaceX merger is still only under discussion.
This article is for information only and does not constitute investment advice.