Elon Musk's SpaceX reports a profit and he hints at a possible merger
with Tesla
[October 21, 2026] By
BERNARD CONDON
NEW YORK (AP) — SpaceX reported a bigger quarterly profit than expected
Tuesday as its satellite communications and artificial intelligence
businesses boomed.
The company, run by Elon Musk, posted a profit for the three months
through September of $4.4 billion, or 35 cents per share, reversing a
year-ago loss and easily topping Wall Street's expectations. Revenue
soared to $14.6 billion, up 161%.
On a conference call with analysts, Musk suggested a merger with his
electric car company Tesla might be in the works, something that has
been rumored for months. He said both companies formed “special
committees” of independent directors to discuss the issue, though he
played down the chances of an imminent deal.
“Some people out there assume that a SpaceX and Tesla merger is a
certainty,” he said. “I think that would be overstating it.”
The AI business became SpaceX's largest by revenue in the third quarter,
although the Starlink satellite service remains the biggest profit
generator.
“They beat across all metrics and the Starlink business looks to be
accelerating,” said Dan Ives, an analyst at Yorkville Ives. “This is
just what (Wall) Street wanted.”
The stock rose 7.5% in after-hours trading.
Musk also told analysts that for next month's launch of its Starship
rocket, SpaceX will attempt to grab both the booster and ship with
mechanical arms upon return to base, a key step toward demonstrating it
can reuse the massive spacecraft.
“The only way that we can extend consciousness beyond Earth on a
sustained basis is with a fully reusable orbital launch vehicle,” Musk
said, calling the attempt, if successful, “a massive technology
milestone.”
SpaceX hopes to get Starship on a regular launch pattern in preparation
for NASA's upcoming lunar missions.
The company already has huge contracts with the federal government, and
House Democrats have called for investigations into those contracts and
Musk’s work with the Department of Government Efficiency. Musk has spent
$276 million since July in support of Republican candidates.
[to top of second column] |
 In a filing for its initial public
offering in June, SpaceX warned that a change in control of Congress
could have a “material and adverse impact on our growth and
competitive position.”
Musk recently drew criticism from politicians in Washington after
speeds for a military version of SpaceX's satellite communications
service were slowed for Ukraine following President Donald Trump's
deal to get more diesel oil from Russia amid a push to end the war.
The Wall Street Journal reported Tuesday that it was Musk who
ordered the slowdown, impeding Ukraine’s use of drones along the
front. SpaceX did not immediately respond to an Associated Press
request for comment on the Journal story.
Both Trump and Musk have denied responsibility for the slowdown.
As midterm elections near, Musk on Monday promised to give one share
of SpaceX to “every kid in America” next year, though he provided no
details on how the distribution would be carried out. With
communities nationwide protesting the construction of large data
centers and concerns about AI safety, AI companies are trying to
build goodwill. Anthropic pledged to commit 5% of its shares to a
new “public benefit” fund.
SpaceX shares have been under pressure over concerns that the
company was spending too much on major projects to compete with
rivals such as Anthropic. The company said capital expenditures
totaled $19.6 billion last quarter, nearly triple the figure from a
year earlier, and it forecast spending would grow to $35 billion to
$40 billion in the current quarter.
Shares of SpaceX closed Tuesday at $147.79, down from a peak near
$201 after its IPO, which made Musk the world’s first trillionaire
at the time. But the share prices for SpaceX and Tesla have since
dropped, reducing his net worth to $925 billion, according to Forbes
magazine.
Tesla reports third-quarter financial results Wednesday. Last week,
Tesla unveiled a new Roadster sports car that in some versions may
include thrusters allowing it to briefly fly using SpaceX technology
— though experts say anything usable for drivers is a long shot.
All contents © copyright 2026 Associated Press. All rights reserved |
