SpaceX Stock Rises After Earnings Beat as Musk Confirms Tesla Merger Talks

SpaceX shares rose around 9% at the New York market open Wednesday after the company reported an earnings beat and Elon Musk confirmed that SpaceX and Tesla have begun discussing a potential combination. Tesla shares also opened more than 2% higher, showing investor interest across both companies.

The move reflects market enthusiasm for a possible SpaceX-Tesla megamerger, but the talks remain early and conditional.

On SpaceX’s earnings call, Musk said SpaceX and Tesla have formed special committees of independent directors to discuss the mechanics of a possible tie-up. Musk, who is CEO of both companies, said he had recused himself from both committees.

He described discussing the long-rumored merger as like “tap dancing through a minefield,” underscoring the sensitivity and complexity of the process.

Musk said he sees merit in combining the companies because it could enable deeper cooperation on AI, robotics, and chipmaking. SpaceX also reported that quarterly revenue more than doubled year over year, helped by strength in its compute leasing business despite high spending on new AI infrastructure.

A combination would bring together businesses spanning rockets, EVs, AI, and other technology areas, expanding the scale of Musk’s corporate ecosystem.

Musk cautioned that any merger would depend on both companies agreeing to transaction terms and securing shareholder approval. The article notes that SpaceX is valued at about $2 trillion, while Tesla has a market capitalization of $1.5 trillion.

Major complications remain, including Tesla shareholder approval of at least 50% and questions around Tesla’s China business because SpaceX has US military contracts. Musk acknowledged that the shareholder requirement would be a “high hurdle.”