SpaceX Stock: 6 things to know about Q3 earnings, AI growth and Tesla merger buzz

Elon Musk’s ambitious revenue outlook and growing artificial intelligence business have put SpaceX shares in focus. The company’s latest earnings have added to investor interest, while speculation over a potential Tesla merger has emerged as another catalyst. (Sources: Stocktwits, MarketWatch, CNBC)

SpaceX reported third-quarter revenue of $14.58 billion, up 161% year-on-year, while net income reached $4.4 billion. Revenue exceeded market expectations, marking a sharp improvement from the year-earlier loss and highlighting the company’s expanding business beyond rocket launches.

SpaceX’s artificial intelligence computing business generated $7.6 billion in third-quarter revenue, surpassing its connectivity business in revenue. Demand for computing capacity and cloud-service agreements has become a key driver of growth, although scaling the infrastructure requires substantial investment.

Starlink remains a core part of SpaceX’s business, with its satellite internet network benefiting from rising subscriber demand. Connectivity revenue reached $5.2 billion in the third quarter, providing another growth engine alongside the company’s expanding AI and computing operations.

Tesla and SpaceX have established special committees to examine a potential merger, according to reports. A combination could create links across AI, computing, robotics and satellite technology, but no deal has been finalised, and any transaction would face shareholder approval requirements.

SpaceX’s growth outlook has attracted investor attention, but execution risks remain. The company’s heavy spending on AI infrastructure and ambitious expansion plans mean investors will be watching whether revenue growth translates into durable profits and cash flow.

(Disclaimer: This slideshow is based on inputs from agencies. These do not represent the views of The Economic Times.)