SpaceX Crushes Q3 Estimates, Then Musk Opens the Door to a Tesla Merger

TLDR

Table of Contents

SpaceX says a possible Tesla merger would need approval from Elon Musk, even though he has stepped away from the talks.
Special committees are exploring a deal, but no decision has been made.
SpaceX reported Q3 sales of $14.58 billion and adjusted earnings of $0.45 per share, well above estimates.
Musk said a merger would need approval votes equal to 50% of Tesla’s total share count.
Some insiders worry his public comments could delay talks by several weeks.

SpaceX said on Thursday that a possible merger with Tesla would need approval from Elon Musk, its controlling shareholder. Musk has stepped away from the talks because of conflicts of interest.

Elon Musk today on a potential merger between SpaceX and Tesla:
"Both Tesla and SpaceX have formed special committees at the request of shareholders. Because I'm a conflicted party I can't be in on these discussions. I don't think we should assume that a merger is a certainty.… pic.twitter.com/Aerc1PxA8P
— Sawyer Merritt (@SawyerMerritt) October 20, 2026

The company shared the details in a regulatory filing. It said no decision has been made by its special committee.

Any deal would also need approval from the committee and the board of directors. The controlling shareholder would have to sign off as well.

What Musk said about the merger

Musk said on Tuesday that a merger would be “a good idea.” He added that special committees have been formed to discuss it.

He made the comments during SpaceX’s third-quarter earnings call. He said the companies could gain from working together on software, chip design, robotics and sending mass to orbit.

Musk also said a deal is not certain. He said winning shareholder approval would be a hurdle.

A merger would need approval votes equal to 50% of Tesla’s total share count. That is not just 50% of those who vote.

Musk owns nearly a fifth of Tesla and holds voting control at SpaceX. Analysts say a merger would give him control of the combined company.

Several Wall Street analysts see a deal as a matter of when, not if. They disagree on how much Tesla shareholders should receive. The potential deal is valued at $3.5 trillion.

Reuters reported that Musk’s public support has rattled some insiders. They worry his comments could invite shareholder scrutiny and delay talks by several weeks.

SpaceX’s third-quarter results

SpaceX reported adjusted earnings of $0.45 per share on sales of $14.58 billion. Analysts had expected $0.13 per share on $12.72 billion.

Revenue rose 161% from a year earlier. Net income was $4.4 billion, compared with a loss of $1.1 billion a year ago.

Starlink connectivity sales rose 69% to $5.25 billion. The superintelligence segment grew about 830% to $7.56 billion, while the space segment rose about 6% to $1.77 billion.

SpaceX expects first-quarter 2027 sales of $33 billion to $37 billion. Musk said he expects annual recurring revenue of $500 billion to $1 trillion by the end of next year.

Tesla cut its annual capital spending forecast to about $20 billion on Wednesday, down from more than $25 billion. SpaceX expects $35 billion to $40 billion in fourth-quarter capital spending.

SpaceX shares closed down 9.14% at $144.75 on Thursday, giving it a market value of $1.94 trillion. Tesla fell 3.08% to $374.58.

In extended trading, SpaceX shares rose about 1%. Tesla shares fell slightly.