{"id":2829,"date":"2026-10-21T08:32:57","date_gmt":"2026-10-21T08:32:57","guid":{"rendered":"https:\/\/newsraise.com\/in\/2026\/10\/21\/elon-musk-spacex-tesla-merger-good-idea-committees\/"},"modified":"2026-10-21T08:32:57","modified_gmt":"2026-10-21T08:32:57","slug":"elon-musk-spacex-tesla-merger-good-idea-committees","status":"publish","type":"post","link":"https:\/\/newsraise.com\/in\/2026\/10\/21\/elon-musk-spacex-tesla-merger-good-idea-committees\/","title":{"rendered":"Elon Musk says SpaceX\u2011Tesla merger is a good idea, committees formed"},"content":{"rendered":"\n<!-- Quick Adsense WordPress Plugin: http:\/\/quickadsense.com\/ -->\n<div class=\"9fece8afa224fd09e54b043d0febfb58\" data-index=\"1\" style=\"float: none; margin:10px 0 10px 0; text-align:center;\">\n<script async src=\"https:\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js\"><\/script>\r\n<!-- NR ATF -->\r\n<ins class=\"adsbygoogle\"\r\n     style=\"display:block\"\r\n     data-ad-client=\"ca-pub-8898941184964366\"\r\n     data-ad-slot=\"4839033563\"\r\n     data-ad-format=\"auto\"\r\n     data-full-width-responsive=\"true\"><\/ins>\r\n<script>\r\n     (adsbygoogle = window.adsbygoogle || []).push({});\r\n<\/script>\n<\/div>\n<p>Elon Musk told investors on a conference call that special committees at both SpaceX and Tesla have been created to explore a potential merger of the two companies. While he described the idea of combining the firms as &#8220;a good idea,&#8221; Musk emphasized that any transaction would be subject to the deliberations of those committees and would ultimately require shareholder approval.<\/p>\n<h2>Official confirmation and market reaction<\/h2>\n<p>The remarks, made on Tuesday, marked the first official acknowledgment that the two businesses are formally discussing a union. Musk said, &#8220;Because I&#8217;m a conflicted party, I can&#8217;t actually be in the discussion of the special committees,&#8221; underscoring his hands\u2011off role in the process. Following the comments, SpaceX shares rose 4.9% in extended trading.<\/p>\n<p>Speculation about a merger has intensified in recent weeks. Barclays analysts suggested in the prior week that an announcement could arrive before Tesla&#8217;s annual meeting in December. Musk has previously hinted at the notion, pointing to growing overlap between the two enterprises.<\/p>\n<h2>SpaceX reports first profit, AI revenue surges<\/h2>\n<p>At the same time the merger talks were disclosed, SpaceX released its quarterly financial results, showing its first profit as a publicly listed company. Revenue for the three months ended September 30 jumped 161% year\u2011on\u2011year to $14.58\u202fbillion. The surge was driven largely by artificial\u2011intelligence (AI) services, which generated $7.56\u202fbillion\u2014almost a tenfold increase from the prior year.<\/p>\n<p>AI earnings stem primarily from renting data\u2011centre computing capacity to developers such as Anthropic, Alphabet (Google\u2019s parent) and Reflection AI, rather than from sales of SpaceX\u2019s own AI models. CFO Bret Johnsen said the company expects annual recurring revenue of about $100\u202fbillion by the end of 2026, while Musk added an off\u2011script projection that SpaceX could reach between $500\u202fbillion and $1\u202ftrillion in annual recurring revenue by the end of 2027.<\/p>\n<p>The firm posted net income of $4.4\u202fbillion, a reversal from a $1.1\u202fbillion loss a year earlier, and comfortably beat analysts\u2019 average expectation of a $1.57\u202fbillion profit. On an adjusted per\u2011share basis, SpaceX earned 45\u202fcents, well above the 13\u2011cent estimate compiled by IBES.<\/p>\n<p>Will Rhind, chief executive of asset manager GraniteShares, described the quarter as delivering &#8220;the top line the bulls wanted,&#8221; noting that the compute contracts signed earlier in the year are converting into revenue faster than many had anticipated.<\/p>\n<h2>Starlink growth, Starship development and longer\u2011term outlook<\/h2>\n<p>SpaceX\u2019s satellite\u2011internet arm, Starlink, continued to expand, reporting 13.6\u202fmillion subscribers in the quarter\u2014exceeding the analyst consensus of 12.19\u202fmillion. However, average monthly revenue per subscriber fell from $99 in 2023 to $69 in the latest quarter, reflecting the company\u2019s push into markets with lower price points. Musk warned that further entry into countries with limited purchasing power could depress average revenue per user even more.<\/p>\n<p>The company\u2019s longer\u2011term strategy also hinges on Starship, its next\u2011generation reusable launch system. Although Starship has not yet entered commercial service, it is expected to launch more advanced Starlink satellites and support AI\u2011computing infrastructure in orbit. During the most recent test flight, Starship successfully deployed several Starlink satellites before an engine issue caused the mission to end hours earlier than planned.<\/p>\n<p>While Falcon rockets remain active across commercial and government missions, SpaceX has increasingly prioritized launching its own satellites over carrying third\u2011party payloads. This shift, combined with a rapidly growing AI business and expanding connectivity services, has altered the company\u2019s financial profile and amplified interest in a possible merger with Tesla.<\/p>\n<p>Capital spending in the third quarter reached $19.6\u202fbillion, of which $16.4\u202fbillion was allocated to AI\u2011related computing infrastructure\u2014a near\u2011tripling of the previous level. The firm expects to spend between $35\u202fbillion and $40\u202fbillion on capital expenditure in the fourth quarter, reflecting the scale of its AI and rocket development programs.<\/p>\n<p>Analysts such as Daniel Newman, CEO of the Futurum Group, observed that the strength and diversification of SpaceX\u2019s business make a merger with Tesla feel &#8220;imminent,&#8221; citing the company\u2019s hyperscale AI operations as a source of operating leverage that could benefit both the satellite and launch segments.<\/p>\n<p>In summary, Musk\u2019s public endorsement of a potential SpaceX\u2011Tesla merger coincides with SpaceX\u2019s first profit, a dramatic rise in AI revenue, and ongoing expansion of its Starlink subscriber base. The formation of special committees signals that the discussion has moved beyond speculation, though any final deal will still need the approval of both companies\u2019 shareholders.<\/p>\n\n<div style=\"font-size: 0px; height: 0px; line-height: 0px; margin: 0; padding: 0; clear: both;\"><\/div>","protected":false},"excerpt":{"rendered":"<p>Elon Musk confirmed that special committees at SpaceX and Tesla are discussing a possible merger, while SpaceX reported its first public\u2011company profit driven by a surge in AI revenue.<\/p>\n","protected":false},"author":2,"featured_media":2830,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[299],"tags":[2788,360,2595,3139,2757,361],"class_list":["post-2829","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-ai-revenue","tag-elon-musk","tag-merger","tag-spacex","tag-starlink","tag-tesla","entry"],"_links":{"self":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2829","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/comments?post=2829"}],"version-history":[{"count":0,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/posts\/2829\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media\/2830"}],"wp:attachment":[{"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/media?parent=2829"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/categories?post=2829"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/newsraise.com\/in\/wp-json\/wp\/v2\/tags?post=2829"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}