SpaceX shares reportedly climb as Musk raises possible Tesla merger

SpaceX shares reportedly gained about 10% in premarket trading on October 21 following quarterly results that exceeded revenue expectations. Elon Musk also raised the possibility of combining SpaceX with Tesla, though a merger remains uncertain.

SpaceX posted quarterly revenue of $14.6 billion, an increase of 161% from a year earlier. Net income reached $4.4 billion. Musk said independent directors at both companies had formed committees to consider a potential combination.

The results reflect the growing contribution of AI alongside SpaceX's satellite communications operations. AI became its largest revenue source during the quarter, while Starlink remained its leading source of profit.

Any potential combination remains under consideration. Musk cautioned against treating a merger as inevitable and played down expectations of an immediate agreement.