SpaceX Reports Strong Quarterly Profit Amid Growth in AI and Communications

SpaceX has announced a surprising surge in quarterly profit, largely attributed to the success of its satellite communications and artificial intelligence divisions. This update came on a Tuesday when the company detailed its earnings, revealing a profit of $4.4 billion, or 35 cents a share, an impressive turnaround from a loss the previous year. Revenue also climbed dramatically, reaching $14.6 billion, marking a 161% increase.

During a discussion with analysts, Elon Musk hinted at a potential merger between SpaceX and Tesla, a topic that’s been circulating in speculation for a while. He mentioned that the two companies have set up “special committees” made up of independent directors to consider this possibility but downplayed expectations of an immediate agreement.

Musk stated, “Some people out there assume that a SpaceX and Tesla merger is a certainty. I think that would be overstating it.” Meanwhile, the artificial intelligence sector emerged as SpaceX’s largest revenue source in the third quarter, although the Starlink satellite service continues to be the biggest contributor to profits.

Analyst Dan Ives noted, “They beat across all metrics and the Starlink business looks to be accelerating. This is just what Wall Street wanted.” Following the financial results, SpaceX’s stock price increased by 7.5% in after-hours trading.

Looking ahead, Musk informed analysts about the upcoming launch of SpaceX’s Starship rocket, which plans to utilize mechanical arms for retrieving both the booster and the spacecraft when they return to base. This is seen as a critical step in showcasing the vehicle’s reusability. Musk emphasized the importance of a fully reusable orbital launch vehicle, claiming that it’s essential for extending human consciousness beyond Earth on a sustained basis. He referred to a successful attempt as “a massive technology milestone.”

SpaceX aims to establish a regular launch schedule for Starship ahead of NASA’s planned lunar missions. Despite existing substantial contracts with the federal government, there are calls from House Democrats for investigations into these agreements and Musk’s involvement with the Department of Government Efficiency. In the past few months, Musk has also spent nearly $276 million backing Republican candidates.

In a filing for its initial public offering earlier this year, SpaceX warned that a shift in Congress could negatively impact its growth and competitive edge. Recently, Musk faced backlash over the slowing of speeds for a military version of SpaceX’s communications service for Ukraine, a move made after a deal under President Trump related to oil from Russia. Reports have suggested Musk initiated the slowdown, which hindered Ukraine’s drone operations. Both Musk and Trump have denied any wrongdoing.

As the midterm elections approach, Musk made headlines with a promise to give one share of SpaceX to “every kid in America” next year, although specifics on the distribution process remain vague. As concerns over AI safety and large data centers grow, companies in the AI sector are striving to build goodwill, with Anthropic pledging a commitment of 5% of its shares to a benefit fund.

SpaceX’s shares have faced pressure due to worries aboutoverspending on major projects to remain competitive with rivals like Anthropic. Last quarter, the firm reported capital expenditures of $19.6 billion—almost three times that of the previous year—and forecasted that spending would rise to between $35 billion and $40 billion in the current quarter.

As of the latest figures, SpaceX shares closed at $147.79, down from a peak of nearly $201 following its IPO, which at the time made Musk the world’s first trillionaire. Since then, the stock prices for both SpaceX and Tesla have dropped, bringing Musk’s net worth down to approximately $925 billion, according to Forbes.

Tesla is set to release its third-quarter financial results soon. Recently, the company unveiled a new Roadster sports car, which may feature thruster technology enabling it to fly briefly—although experts believe practical applications for everyday drivers are unlikely.