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With earnings in rearview mirror, SpaceX-Tesla merger chatter takes center stage
Elon Musk endorsed a potential merger between SpaceX and Tesla, revealing that both companies have formed special committees to explore the
Key points
- Special committees have been formed at Tesla and SpaceX to explore a potential merger between the two companies.
- SpaceX has a market cap of nearly $2 trillion, while Tesla is valued at approximately $1.5 trillion.
- Musk owns 19.8% of Tesla shares and holds almost 80% voting control at SpaceX via supervoting shares.
Why it matters. A merger could consolidate AI and robotics initiatives and potentially give Musk greater control over a combined entity through a stock swap.
Elon Musk told Tesla shareholders on Wednesday that he had already addressed a potential merger with SpaceX. Musk revealed on Tuesday that both companies formed special committees to explore the transaction, which would combine a $2 trillion SpaceX and a $1.5 trillion Tesla. William Blair analysts claim the move is about control rather than business strength, while Columbia University professor Eric Talley suggests it could resolve resource allocation disputes.
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With earnings in rearview mirror, SpaceX-Tesla merger chatter takes center stage
A Tesla-SpaceX merger may be in the works, but the companies face a long road of negotiations and regulatory reviews. Visual China Group | Getty Images Elon Musk told Tesla shareholders on Wednesday that, when it comes to a potential merger with SpaceX , he'd already " said everything that should be said." Tesla's head of investor relations told analysts before opening the call to their questions that execs "will not be addressing" the matter. A day earlier, Musk had already ensured that a tie-up between his trillion-dollar companies would be a dominant topic of conversation on Wall Street for the foreseeable future, after he endorsed a potential merger on SpaceX's third-quarter earnings call. "Do I think it would be a good idea? Yes," Musk said Tuesday, revealing that both companies have formed special committees to explore a transaction. While Musk said he was "tap dancing through a minefield" by publicly commenting on the issue, analysts, investors and fans have long been enamored by the " Muskonomy " and the prospect of a conglomerate that would bring electric vehicle and humanoid robot development together with reusable rockets, satellite communications and artificial intelligence. Merger chatter overshadowed Tesla's earnings report, which showed declining auto revenue and an even steeper drop in the company's energy business. Musk has been selling Wall Street on a future .
Meta and Tesla bulls get confidence boost after SpaceX earnings
A big rally in SpaceX after earnings is giving hope to Meta and Tesla bulls ahead of their reports due Wednesday afternoon. watch now A big rally in SpaceX after earnings is giving hope to Meta and Tesla bulls ahead of their reports due Wednesday afternoon. Options trading in both stocks leaned bullish after the open Wednesday, with Meta options looking particularly one-sided as traders bought more calls than puts and more put trades likely initiated by sellers than buyers. More than 30,000 calls traded at or above the ask, suggesting they were bought, versus under 17,000 puts, Cboe LiveVol data shows. Meta options have generally been bullish since the stock's March low, when the put/call ratio of open contracts plunged to 0.5, meaning two calls open for every one put contract, and that hasn't budged much since, Barchart data show. Almost $22 million of trades were done with a bullish intent on Wednesday, compared to $7.5 million looking for downside. Stock Chart IconStock chart icon Meta, Tesla in past three months Market-makers are pricing a 6.5% swing for Meta after earnings, a little under the 9% average the past four quarters. The most popular contract to buy on Wednesday was the 800 strike call expiring Friday that costs $1.40 and needs Meta to rally 14% into the weekend, SpotGamma data shows. In Tesla, the flows also lean bullish, but with less conviction. The put/call r.
Tesla Holds Earnings Call Amid SpaceX Merger Study
Tesla held its quarterly earnings call on October 21. The event follows Elon Musk's confirmation that Tesla and SpaceX are formally studying a merger. Wall Street analysts expect the quarter's profit to be lower than the figures reported a year ago. The call occurs shortly after the company's flying Roadster gained significant public attention.
SpaceX stock jumps 8% after earnings beat and Musk hints at Tesla tie-up
SpaceX shares jumped after the company reported surging revenue growth in its third quarter, and owner Elon Musk floated a potential SpaceX-Tesla merger. watch now SpaceX stock jumped Wednesday after the company reported surging revenue growth in its third quarter, and owner Elon Musk floated a potential SpaceX- Tesla merger. The space company, which made its debut on the Nasdaq in the biggest initial public offering ever in June, reported third-quarter revenue on Tuesday of $14.6 billion, up 161% from the previous year, and beating LSEG consensus estimates of $12.72 billion. Meanwhile, its operating income came in at $2.8 billion, with net income of $4.4 billion, after reporting a net loss of $1.05 billion in the same period a year earlier. On an earnings call, Musk said he's considering a combination with Tesla — which would mark the largest merger in history — and that the boards of both companies have created specific committees to discuss a consolidation. "I do think there's a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there's a lot to be gained from cooperating," Musk said on the call. Tesla is set to report third-quarter earnings after the closing bell on Wednesday. Stock Chart IconStock chart icon SpaceX shares since its debut on the Nasdaq. Shares of other space stocks, including Rocket Lab , Intuitive Machin.
Stock market today: S&P 500, Nasdaq futures rise as earnings roll in, SpaceX stock surges
Investors assessed a batch of earnings on Wednesday as SpaceX shares surged.
SpaceX earnings call today
The SpaceX earnings call on Oct. 20 lands just weeks after Starship reached orbit for the first time, but investors are focused on whether Elon Musk's company can show its first profit as a public company.
SpaceX to report Q3 earnings today with shares down 35% from IPO peak
SpaceX is set to report its third-quarter results on October 20, with investors closely watching Starlink's growth trajectory, subscriber gains and profitability metrics. The earnings announcement comes after SpaceX shares fell 35% from their post-IPO listing peak, putting the company's financial performance under intense scrutiny. Investors will be looking for clues on whether strong Starlink momentum can offset rising investment in AI-related businesses. The company's post-listing rally has given way to a sharp correction in recent months. The results will provide the first comprehensive look at SpaceX's financial health since its high-profile market debut.
SpaceX Snaps 7-Day Losing Streak, Sets Earnings Date That Triggers First Big Share Unlock
SpaceX has snapped a 7-day losing streak, with its stock gaining 3% on Tuesday. The company has set its maiden earnings report date, which coincides with a major share lock-up expiration. The date, August 4, is significant as it marks the first big share unlock for SpaceX. The company's stock has been on a rollercoaster ride, with investors eagerly awaiting the earnings report to gauge the company's performance. The earnings report is expected to provide insights into SpaceX's financials and operational performance, which could have a significant impact on the company's stock price.