SpaceX Shares Surge 8% After 161% Revenue Growth and Musk Hints at Tesla Merger

SpaceX shares surged roughly 8% on Wednesday after the company reported blowout third-quarter results, posting 161% revenue growth that beat Wall Street estimates and included a ninefold expansion in its artificial intelligence business. The strong print eased investor concerns about the sustainability of the global AI investment boom and lifted technology stocks broadly, with the Nasdaq 100 rising about 0.70%, the S&P 500 gaining 0.24%, and the Dow Jones Industrial Average up 0.05%.

Adding fuel to the rally, CEO Elon Musk said on the earnings call that a merger between SpaceX and Tesla would be a "good idea," and confirmed that the boards of both companies had formed special committees to study a potential tie-up. Bloomberg described the prospective deal as what would be the biggest-ever corporate merger, combining electric vehicles, AI data centers, and rocket and satellite capabilities under a single entity valued at roughly $3.5 trillion. Analyst commentary from Truist Securities noted that SpaceX's AI-related disclosures supported "continued pricing power and shorter payback periods" for AI cloud providers. The earnings results also gave a broader lift to other space stocks, a sector that had been down roughly 26% on average in October before SpaceX's report.