SpaceX stock jumped 10% on Wednesday, following a blowout quarter, and SpaceX is the name every trader is talking about today. And then Elon Musk added some much bigger spice to the recipe. Here is what happened, what it all means, and what’s next.
Why SpaceX’s Stock Jumped on Earnings
SpaceX reported Q3 revenue of $14.58 billion, which is up 161% year-over-year, and well above estimates. Its AI business grew nine-fold.
Some sources called it SpaceX’s first “profitable quarter,” and for a company that splurges on rockets, satellites and chips this is a huge milestone.
SpaceX went public on the Nasdaq on June 12 under the ticker SPCX, and also absorbed Musk’s AI firm xAI earlier this year, explaining why AI now sits at the heart of its growth story.
The stock closed at $147.79. After the report, it climbed to around $161 before the opening bell on Tuesday, and traders were clearly very excited, with the gain approaching 10% by the afternoon.
Musk also said SpaceX could rent out its computing capacity several times over, claiming the company was adding 200,000 chips every month, and Truist analysts said the numbers support the bull case for AI cloud companies.
The Tesla Merger Talk Everyone Is Talking About
On the earnings call, Elon Musk confirmed that SpaceX and Tesla have formed special committees consisting of independent directors and at the shareholders’ request, and Musk himself cannot participate since he is a conflicted party.
Musk was open to the idea, saying that there was “a lot of merit to combining the companies” as the tech world moves into AI.
And he cautioned some caution, as assuming a deal is certain “would be overstating it,” Musk said, as Tesla’s side would need approval of 50% of all shares, not the voting shares alone, which he called a high hurdle.
The numbers involved are huge, as SpaceX is valued near $2.1 trillion and Tesla near $1.5 trillion, with Musk owning about 48% of SpaceX but only around 20% of Tesla, and Barclays expects SpaceX to be the buyer in an all-stock deal.
Under that scenario, Musk would hold about 37% of the combined company and 56% of the vote, Barclays estimates, and a merger would also consolidate 30,221 bitcoin on one balance sheet. SpaceX’s own COO anticipated it, as Gwynne Shotwell told CNBC before the June IPO that a merger “might make Elon’s life a little easier.”
So why is this happening now? In my view, the timing seemed smart, given strong numbers, to give Musk a stronger story to tell, and given that investors are looking for any clue on where his companies can go.
Some traders on prediction markets are now betting on a deal in 2027. Nothing is set yet, and terms have not been set.
How The Wider U.S. Market Is Reacting to SpaceX
Wall Street had mixed action on Tuesday, with the Dow jumping 1% to 52,494.88 and the S&P 500 adding 0.3% to finish at 7,712.57 and the Nasdaq Composite slipping 0.02% to 26,424.82.
Wednesday started on a stronger note, with tech stocks leading the way, and with the Nasdaq rising 1.1% and the S&P 500 up 0.5% and the Dow rising 0.2% by mid-day, as strong results from SpaceX reignited hopes of AI-connected companies.
But not all stocks took part, as Netflix fell on a disappointing revenue outlook, while Super Micro Computer rallied on its own earnings, and Berkshire Hathaway hit its first record high since Warren Buffett announced his CEO exit.
But some strategists saw cracks, with Morgan Stanley’s Mike Wilson saying, “If you look at the breadth of the market, it’s been terrible.”
Other pressure points remain though, as the 10-year yield held near 5.12%, while WTI crude fell 1.8% to about $102 and homebuilder sentiment sank to its lowest level since 2012.
AI nerves rattled Asia on Tuesday, when Korea’s Kospi fell 3.73%, and then a rebound led by Samsung and SK Hynix added about $160 billion in value.
What To Watch Next for SpaceX
The next test is tonight, as Tesla reports Q3 earnings after the closing bell and investors will listen closely for any merger clues, and the stock jumped in pre-market trading on the news.
Next comes the SpaceX price – as one market report called to watch whether SpaceX can hold $150 during the day. Its 52-week high is $226, one cited price target sits near $223.
Then the committees – any update on timing, structure or price would send both stocks flying but remember Musk himself said a deal is still far from being certain.
And here’s the bigger picture – SpaceX is no longer just a rocket company, and investors now take it as an AI infrastructure play, and that changes the math of the stock.
This brings big rewards and big risks, as revenue is surging, but the valuation already assumes a lot of future success, and a merger with Tesla could bring in scale, but would also bring in regulatory, shareholder and execution challenges.
And for everyday investors, patience may be important than speed, as headlines can move a stock 10% in a day, while waiting for facts (like filings and committees) can be smarter than chasing a rally.
Key points in short:
– SpaceX revenue hit $14.58 billion, up 161%.
– Shares rose about 10% after earnings.
– Musk confirmed special merger committees at both companies.
– No deal, price or timeline has been announced.
– Tesla earnings arrive after the bell tonight.
SpaceX stock is not just another earnings story it sits in a crossroads between space, AI, electric cars and one famously bold founder. We all need to stay tuned, as the next few weeks are going to be very interesting.
