SpaceX jumped over 8% in premarket trading on Wednesday after the company reported surging third-quarter revenue growth. The company’s trillionaire owner, Elon Musk, also floated a potential merger between SpaceX and Tesla.
SpaceX reported third-quarter revenue of $ 14.6 billion, up 161% from the previous year and beating estimates of $12.72 billion. Meanwhile, operating income was $2.8 billion, and net income was $4.4 billion, after a net loss of $1.05 billion in the same period a year earlier.
Musk told investors, “I do think there’s a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there’s a lot to be gained from cooperating.”
SpaceX’s Chief Financial Officer Bret Johnson said in the earnings release: “We delivered another strong quarter in Q3. Revenue grew an impressive 161% year-over-year, fueled by continued momentum in Connectivity and a clear inflection in our Super Intelligence business. The combination of our launch leadership, recurring Starlink revenue, and the significant expansion of our SI infrastructure continues to drive meaningful operating leverage. We are building the infrastructure of the future with discipline — focused on capital efficiency, strong returns on invested capital, and maintaining a robust, investment-grade balance sheet — while moving with the velocity to capture the opportunity in front of us.”
The profit win comes after Space X made its debut on the Nasdaq in the biggest IPO ever in June.
Tesla shares were up 1.4% in premarket trading Wednesday following the SpaceX release. Tesla is set to report third-quarter earnings after the closing bell Wednesday.
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