SpaceX Tesla merger committees formed as Q3 revenue jumps 161%

SpaceX Tesla merger committees are now a formal part of the story. On SpaceX's third-quarter call on Tuesday, Oct. 20, Elon Musk said both companies had set up special committees of independent directors to look at combining, hours after SpaceX reported revenue up 161% from a year earlier.

What happened

SpaceX said revenue reached $14.6 billion, compared with $5.6 billion a year before. It booked net income of $4.4 billion against a loss of $1.1 billion, operating income of $2.8 billion and adjusted EBITDA of $8.8 billion, up 306%. The Super Intelligence segment, its name for the AI business, brought in about $7.6 billion, up from $813 million, while Connectivity, led by Starlink, grew 69% to roughly $5.2 billion.

Starlink added 1.6 million consumer subscribers in the quarter to reach 13.6 million, according to the call. The company put its backlog at $63 billion, with about $42 billion expected to turn into revenue within 12 months, and guided first-quarter 2027 revenue to between $33 billion and $37 billion.

Other lines grew more slowly. Space revenue, mostly launches, rose 6% to about $1.8 billion despite fewer flights. Starlink consumer revenue per user climbed 5% from the prior quarter to $69 a month, and mobile users jumped 37% to 22 million. SpaceX also flew its first revenue-generating Starship mission, which carried 26 Starlink V3 satellites, though Musk cautioned that the next booster and ship catch attempt may not succeed.

Spending is climbing just as fast. Capital expenditure was $19.6 billion in the quarter, and SpaceX expects $35 billion to $40 billion in the fourth quarter as it builds out computing capacity in Memphis and Southaven. Nameplate compute stood at 1.7 gigawatts at the end of September.

Why it matters

Musk was careful about the merger. He said the committees were formed at shareholders' request, that he is excluded because he runs both companies, and that "the special committees have not reached agreement on the terms of any transaction." He called the process "an odd kabuki dance" and warned that treating a deal as certain "would be overstating it."

He also flagged a high bar: on Tesla's side, approval would need a majority of all outstanding shares, not just of votes cast. That matters because the SpaceX Tesla merger committees only start a process; they do not guarantee an offer. Traders had already been weighing the idea, as we covered in our look at Tesla SpaceX merger odds.

SpaceX shares rose about 8% in extended trading, CNBC reported, after closing near $148, above the $135 IPO price but well below their peak near $226. The move came as tech stocks tried to steady after the Nasdaq chip rebound earlier in the week.

What's next

Tesla reports its own results after the bell on Wednesday, so investors will look for any comment from its board or management. Full detail on SpaceX's quarter is in its earnings release.

On Polymarket, an official merger announcement by Dec. 31 was priced at 23% and one by June 30, 2027, at 57% as of 08:25 MSK on Oct. 21. Until the SpaceX Tesla merger committees agree on terms, those prices will swing on every hint from either company.