SpaceX and Tesla have established independent board committees to explore a potential merger that could bring two of Elon Musk’s largest companies under one corporate structure. The disclosure came as SpaceX reported a sharp increase in quarterly revenue and its first quarterly profit since becoming a publicly traded company earlier this year.
SpaceX reported $14.6 billion in revenue for the third quarter of 2026, an increase of 161% from a year earlier. Net income reached $4.4 billion, compared with a $1.1 billion loss during the same period last year. The results reflect expanding operations across the company’s satellite internet, artificial intelligence, and space launch businesses.
Musk confirmed the merger discussions during SpaceX’s earnings call Tuesday, saying the companies had formed separate committees of independent directors to evaluate a possible combination. Because he leads both businesses, Musk said he would not participate directly in the committees’ negotiations. No agreement has been reached, and any proposed transaction would face additional approvals.
Investors responded to the developments by pushing SpaceX shares approximately 8% higher in extended trading Tuesday. The company’s financial results showed particularly strong growth in its artificial intelligence operations, which generated approximately $7.6 billion in quarterly revenue. Its Starlink satellite internet business also continued expanding, supported by demand from consumers, businesses, and government customers.
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A merger could combine Tesla’s electric vehicles, robotics, and manufacturing capabilities with SpaceX’s satellite communications, launch systems, and growing artificial intelligence infrastructure. However, the companies have not announced a transaction, valuation, or timetable. For now, the discussions represent a potentially significant shift in how Musk’s businesses could operate as their investments in advanced computing and other technologies increasingly overlap.
