Elon Musk said Tuesday (Oct 20) that he would back a merger of SpaceX and Tesla, as his rocket and AI company reported its first quarterly profit since going public, driven by deals to rent out computing power to AI firms. Asked about a possible tie-up on a call with analysts, Musk said he felt he was "tap dancing through a minefield," but noted that a combination would be "a good idea." Shares in SpaceX shot up nearly five per cent in after-hours trading following the comments.<h2>Committees set up to study the deal</h2>Musk said special committees of independent directors at both SpaceX and Tesla have been set up to study the idea at the request of shareholders. He added that he could not take part in their talks because he has a conflict of interest. Musk is chief executive of both companies, and also serves as chairman and chief technology officer of SpaceX.Also read | <a href="https://www.wionews.com/india-news/starlink-says-ready-to-connect-india-with-high-speed-internet-amid-reliance-row-1792206635252">Starlink says 'ready to connect India with high-speed internet' amid Reliance row</a>As of June 30, he owns 48.4 per cent of SpaceX, according to a regulatory filing, and controls more than 82 per cent of its voting power through super-voting shares. He holds about 20 per cent of Tesla. The committees have not agreed on the terms of any deal and there is no guarantee they will, Musk said, cautioning that it would be overstating it to treat a merger as a certainty. Any deal would need the backing of a majority of all Tesla shares, not just those cast in a vote, which Musk called "quite a high hurdle."He said the two companies could gain from working together on AI software, chip design, robotics and space-based computing.<h2>First profit, AI-led turnaround</h2>His remarks came after SpaceX posted net income of $4.4 billion for the July-September period, compared with a loss of $1.1 billion a year earlier. Revenue jumped 161 per cent to $14.6 billion. The quarterly results follow a bumpy start on Wall Street. SpaceX began trading on the Nasdaq on June 12 after an IPO priced at $135 a share that raised about $85.7 billion. Its first earnings report as a listed company showed second-quarter revenue of $7.8 billion and a net loss of $541 million.The AI division, which SpaceX now calls "Super Intelligence," (inspired by US President Donald Trump's push to call Artificial intelligence by this name) drove the turnaround. The unit's revenue rose more than nine times from a year earlier to $7.6 billion, overtaking the Starlink satellite internet business as the company's largest source of sales. SpaceX credited new cloud services agreements, wider adoption of its Grok chatbot and its acquisition of Cursor, an AI coding startup. Cloud customers include Anthropic, which agreed in May to pay nearly $45 billion over three years for computing power at SpaceX's Colossus data centers, and Google, which signed on in June to pay $920 million a month from October through June 2029.Also read | <a href="https://www.wionews.com/photos/inside-tesla-s-roadster-10-features-of-elon-musk-s-flying-car-that-push-the-limits-of-electric-vehicles-in-pics-1792121766476">Inside Tesla's Roadster: 10 features of Elon Musk's 'flying car' that push the limits of electric vehicles | In Pics</a><h2>Heavy spending, big ambitions</h2>The AI unit turned an operating profit of $431 million, compared with a loss of $1.7 billion a year earlier. Spending remains heavy. SpaceX invested $19.6 billion in the quarter, $16.4 billion of it in AI, bringing capital spending for the first nine months of the year to $48 billion. Its computing capacity reached 1.7 gigawatts, up from 0.6 gigawatts a year earlier. Musk said he was "fairly confident" SpaceX could bring an additional 10 gigawatts of computing capacity online in 2027, on top of the roughly 2.5 to 3.0 gigawatts expected by year-end, though he added that power, cooling and electrical equipment were "somewhat of a limiting factor."Revenue at the Starlink unit grew 69 per cent to $5.2 billion, and consumer subscribers reached 13.6 million, though average monthly revenue per consumer fell to $69 from $83 a year earlier. SpaceX also completed the first revenue-generating flight of Starship, the giant rocket central to Musk's Mars ambitions, carrying 26 next-generation Starlink satellites into orbit.

Musk says a SpaceX-Tesla merger would be "a good idea" as his rocket firm posts its first quarterly profit, $4.4 billion, driven by an AI division that overtook Starlink. Directors' committees are studying the deal, but Musk warns it is far from certain. Read on.


Elon Musk said Tuesday (Oct 20) that he would back a merger of SpaceX and Tesla, as his rocket and AI company reported its first quarterly profit since going public, driven by deals to rent out computing power to AI firms. Asked about a possible tie-up on a call with analysts, Musk said he felt he was "tap dancing through a minefield," but noted that a combination would be "a good idea." Shares in SpaceX shot up nearly five per cent in after-hours trading following the comments. Committees set up to study the deal Musk said special committees of independent directors at both SpaceX and Tesla have been set up to study the idea at the request of shareholders. He added that he could not take part in their talks because he has a conflict of interest. Musk is chief executive of both companies, and also serves as chairman and chief technology officer of SpaceX. Also read | Starlink says 'ready to connect India with high-speed internet' amid Reliance row As of June 30, he owns 48.4 per cent of SpaceX, according to a regulatory filing, and controls more than 82 per cent of its voting power through super-voting shares. He holds about 20 per cent of Tesla. The committees have not agreed on the terms of any deal and there is no guarantee they will, Musk said, cautioning that it would be overstating it to treat a merger as a certainty. Any deal would need the backing of a majority of all Tesla shares, not just those cast in a vote, which Musk called "quite a high hurdle." He said the two companies could gain from working together on AI software, chip design, robotics and space-based computing. First profit, AI-led turnaround His remarks came after SpaceX posted net income of $4.4 billion for the July-September period, compared with a loss of $1.1 billion a year earlier. Revenue jumped 161 per cent to $14.6 billion. The quarterly results follow a bumpy start on Wall Street. SpaceX began trading on the Nasdaq on June 12 after an IPO priced at $135 a share that raised about $85.7 billion. Its first earnings report as a listed company showed second-quarter revenue of $7.8 billion and a net loss of $541 million. The AI division, which SpaceX now calls "Super Intelligence," (inspired by US President Donald Trump's push to call Artificial intelligence by this name) drove the turnaround. The unit's revenue rose more than nine times from a year earlier to $7.6 billion, overtaking the Starlink satellite internet business as the company's largest source of sales. SpaceX credited new cloud services agreements, wider adoption of its Grok chatbot and its acquisition of Cursor, an AI coding startup. Cloud customers include Anthropic, which agreed in May to pay nearly $45 billion over three years for computing power at SpaceX's Colossus data centers, and Google, which signed on in June to pay $920 million a month from October through June 2029. Also read | Inside Tesla's Roadster: 10 features of Elon Musk's 'flying car' that push the limits of electric vehicles | In Pics Heavy spending, big ambitions The AI unit turned an operating profit of $431 million, compared with a loss of $1.7 billion a year earlier. Spending remains heavy. SpaceX invested $19.6 billion in the quarter, $16.4 billion of it in AI, bringing capital spending for the first nine months of the year to $48 billion. Its computing capacity reached 1.7 gigawatts, up from 0.6 gigawatts a year earlier. Musk said he was "fairly confident" SpaceX could bring an additional 10 gigawatts of computing capacity online in 2027, on top of the roughly 2.5 to 3.0 gigawatts expected by year-end, though he added that power, cooling and electrical equipment were "somewhat of a limiting factor." Revenue at the Starlink unit grew 69 per cent to $5.2 billion, and consumer subscribers reached 13.6 million, though average monthly revenue per consumer fell to $69 from $83 a year earlier. SpaceX also completed the first revenue-generating flight of Starship, the giant rocket central to Musk's Mars ambitions, carrying 26 next-generation Starlink satellites into orbit.

Musk says a SpaceX-Tesla merger would be "a good idea" as his rocket firm posts its first quarterly profit, $4.4 billion, driven by an AI division that overtook Starlink. Directors' committees are studying the deal, but Musk warns it is far from certain. Read on.

'Tap dancing through a minefield': Musk backs SpaceX-Tesla merger as AI boom fuels rocket firm's first profit

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'Tap dancing through a minefield': Musk backs SpaceX-Tesla merger as AI boom fuels rocket firm's first profit