Musk calls Tesla-SpaceX merger a ‘good idea’ as SpaceX posts first profit as a public company

Elon Musk said on October 20th that a merger between SpaceX and Tesla would be a "good idea" and that the two companies were forming committees to discuss the union. The companies posted their first profit as a public entity in their latest financial results, with SpaceX reporting a record-breaking revenue of $14.58 billion for the three months ended September 30th, up 161% from the previous year.

AI revenue surged by nearly 10 times to $7.56 billion, reflecting the growing importance of artificial intelligence to SpaceX's business. Musk, however, noted that as a "conflicted party," he cannot participate in discussions within the special committees. He hinted at a potential future annual recurring revenue of $500 billion to $1 trillion for SpaceX by the end of 2027.

SpaceX's main revenue stream has historically been its Starlink internet services, but the company is increasingly focusing on AI, with AI revenue accounting for $16.4 billion of the company's total capital spending. The company's operating losses in the AI unit have been substantial, but the growth in AI revenue is now providing the necessary operating strength and leverage for SpaceX's satellite and launch business.