SpaceX Posts $14.6 Billion Quarter as Musk Confirms Tesla Merger Exploration
SpaceX reported third-quarter 2026 revenue of $14.6 billion and net income of $4.4 billion in a release issued after the market closed on Tuesday, October 20, 2026. Revenue rose 161% from $5.6 billion. The company moved from a net loss of $1.1 billion a year earlier to a profit, an improvement of $5.5 billion.
The quarter's growth was concentrated in one segment. Reuters reported that SpaceX's AI revenue rose more than ninefold to $7.6 billion, which accounts for a little over half of the total. In the second quarter, the company reported revenue of $7.8 billion, up 92% from $4.1 billion, and a net loss of $541 million. Quarter over quarter, revenue nearly doubled, and the company went from a loss to a profit within a single quarter.
The earnings were not the only news on the call. Bloomberg reported that Elon Musk said SpaceX and Tesla have formed special committees to explore a potential merger. Reuters quoted Musk calling a merger "a good idea." Bloomberg characterized the committees as a preliminary step toward what would rank as a major merger. This is an exploratory process, not an agreed transaction. Neither company has announced terms, and the committees' work has no stated end date.
The Tesla link is not new. Tesla's quarterly report for the period ended June 30, 2026 states that Tesla invested $2.00 billion in SpaceX common stock. SpaceX's own 10-Q for the same period discloses that in June 2026 the company issued senior unsecured notes, with The Bank of New York Mellon Trust Company, N.A. as trustee. Reuters reported that SpaceX investors pressed Musk on a Tesla merger before the results were released, which suggests the question was already on shareholders' minds. Reuters also estimated that a combined company would be worth about $3.5 trillion, ranking fifth globally.
Markets reacted quickly. CNBC reported that SpaceX shares climbed about 8% in extended trading after the 161% revenue growth was reported. MarketWatch reported that Tesla shares climbed nearly 2% in extended trading after Musk's comments. Tesla's reaction is smaller, which is typical when the acquirer or target is still undefined. The January 30, 2026 episode is a useful reference point. Tesla shares jumped nearly 5% on that day after reports that SpaceX was in deal talks with Musk's other companies. Those reports did not produce a transaction, and the current move should be weighed the same way: a reaction to a process, not to a price or structure.
The governance question deserves more attention than the share moves. In April 2023, a coalition of 17 Tesla shareholders asked the board to rein in Musk, arguing that his distraction with SpaceX and Twitter was hurting the EV maker. A combination of the two companies would put the same concern at the center of any deal. Special committees are the usual mechanism boards use when a controlling figure sits on both sides of a transaction, and the composition, mandate, and independence of these committees will matter more to Tesla holders than any headline valuation.
For SpaceX holders, the picture is different. The quarter shows a company with sharply higher revenue, an AI business that now accounts for most of the growth, and a return to profitability. A merger would tie that profile to a publicly traded car company whose shares trade on a different set of expectations. Whether that combination creates value is an open question, and the committees have not yet produced an answer.
The practical takeaway for an expert reader is narrow. The earnings are reported fact. The merger is announced intent, with committees formed and no agreed structure. Everything priced into either stock after hours is a judgment about what that intent might become.
