SpaceX and Tesla Inc. have formed committees to explore a merger, but Elon Musk, the CEO of both Texas companies, says no such move is imminent.
The news came as SpaceX reported earnings that increased more than expected due largely to its booming communications satellite and data businesses.
The Starbase company reported a profit of $4.4 billion in the three months through September, an improvement from a loss of $1 billion a year ago. Revenue rocketed to $14.58 billion, more than double a year ago.
The profit was more than twice what Wall Street expected. SpaceX shares jumped in after-hours trading. Tesla also gained.
Responding to simmering questions about a looming merger of SpaceX and Tesla Inc., Musk told investors that, at the request of shareholders, the companies have formed special committees to discuss the idea but suggested no tie-up is guaranteed.
“Some people out there assume that a SpaceX and Tesla merger is is a certainty and I think that would be overstating it,” he said.
Musk is by far the largest shareholder in SpaceX, which went public earlier this year. He also holds the largest single chunk of shares in Austin-based Tesla.
“Obviously there’s no guarantee,” he said of the committees suggesting a merger, “but I do think there’s a lot of merit to combining the companies as we are pretty much in the superintelligence singularity.”
He also promised the rocket company would try to pull off its first-ever tower catch of its Starship mega-rocket’s upper stage on its next mission.
SpaceX President Gwynne Shotwell said after that was accomplished, Starship’s launch cadence could increase rapidly and, with it, profits from the company’s space business.
“We expect Starship to fly weekly at some point in the first half next year, and then second half next year twice weekly, or maybe even more frequently than that,” she said. “By the end of next year, the rate at which we launch Starship will increase dramatically as we solve the rapid and complete reusability.”
This is a developing story. Please check back for updates.
