SpaceX Posts First Profit, Discloses Committees Exploring Tesla Merger

SpaceX reported its first profit as a public company Tuesday, posting $4.4 billion in net income for its quarter ended Sept. 30, and disclosed it has formed special committees with Tesla to explore a potential merger that would rank as the largest ever. The company easily beat analysts' net-income estimates of $1.88 billion, swinging from a $1.1 billion net loss a year earlier. Revenue totaled $14.6 billion, nearly double the prior quarter's $7.8 billion, as capital expenditures reached $19.59 billion, mainly for AI computing. Its "super intelligence" division recorded $431 million in operating income on $7.56 billion in revenue, reversing a second-quarter loss. The connectivity segment, including Starlink, posted $2.37 billion in operating profit on $5.25 billion in revenue. Musk said he is not participating in merger committee discussions as a conflicted party, and terms have yet to be agreed. SpaceX shares rose $1.71, or nearly 8%, to $159.50 in after-hours trading. Tesla climbed 1.2%.