SpaceX Shares Surge 10% as Strong AI Revenue Fuels Earnings Beat and Musk Floats Tesla Merger

SpaceX shares jumped 10.4% in premarket trading Wednesday following stronger-than-expected third-quarter earnings and comments from Elon Musk about a possible combination with Tesla. The aerospace and artificial intelligence company, which completed its record-breaking Nasdaq initial public offering in June, reported substantial revenue growth as its expanding AI infrastructure operations became an increasingly important driver of financial performance.

Third-quarter revenue reached $14.6 billion, representing a 161% increase from the same period last year and exceeding analysts' consensus estimate of $12.72 billion, according to LSEG. SpaceX reported operating income of $2.8 billion and net income of $4.4 billion, reversing a net loss of $1.05 billion a year earlier. The results demonstrated a significant improvement in profitability alongside rapid business expansion.

The company's Super Intelligence division emerged as its largest business segment, generating $7.56 billion in quarterly revenue compared with $813 million in the prior-year period. The more than ninefold increase reflects accelerating demand for AI computing infrastructure and the company's growing presence in the market. Chief Financial Officer Bret Johnson attributed the strong performance to expanding Super Intelligence capacity and recurring revenue from Starlink's satellite internet operations.

SpaceX also delivered an optimistic outlook for early 2027, forecasting first-quarter revenue between $33 billion and $37 billion. The projection substantially exceeded Wall Street's average estimate of $22.2 billion, signaling expectations for continued rapid expansion. The guidance suggests that management anticipates sustained demand for computing infrastructure and connectivity services as its businesses scale.

Investor attention also focused on Musk's disclosure that SpaceX and Tesla are considering a potential merger. During the earnings call, Musk said both companies had established dedicated board committees to evaluate a combination, arguing that closer cooperation could create significant opportunities as artificial intelligence capabilities advance. A transaction involving the two companies could rank among the largest corporate mergers in history, although no agreement, valuation or timeline has been announced.

Tesla shares gained 2.1% in premarket trading following the comments, ahead of its scheduled third-quarter earnings release after Wednesday's market close. Other space-related companies, including Rocket Lab, Intuitive Machines and AST SpaceMobile, also advanced. The broader gains reflected renewed investor interest in companies exposed to aerospace technology, satellite infrastructure and advanced computing.

SpaceX's earnings also provided a positive signal for the AI cloud infrastructure industry, which has recently faced concerns about financing costs and the sustainability of capital-intensive expansion. Analysts at Truist Securities said the company's results supported expectations for continued pricing power and shorter investment payback periods among AI computing providers. They highlighted management's indication that customer demand substantially exceeded available computing capacity.

The positive commentary helped lift shares of several AI infrastructure companies. Nebius, CoreWeave, Iren and Applied Digital each gained more than 3% in premarket trading Wednesday. Truist analysts suggested that strong demand could allow cloud infrastructure providers to maintain favorable pricing even as higher borrowing costs create additional financial pressure.

The earnings report arrives during a period of heightened scrutiny over the economics of artificial intelligence investment. Technology companies are committing substantial capital to data centers, computing equipment and supporting infrastructure, prompting questions about whether future revenue can justify the spending. SpaceX's rapid revenue expansion and improved profitability offer an encouraging indication that demand for AI computing services remains strong, although the industry's longer-term investment returns remain uncertain.

SpaceX's latest results strengthen its position at the intersection of aerospace, satellite connectivity and artificial intelligence. Its accelerating Super Intelligence revenue, ambitious growth forecast and potential merger discussions with Tesla have created new expectations for the company's future direction. However, investors will continue to assess whether SpaceX can sustain its expansion, maintain profitability and translate a possible corporate combination into measurable financial benefits.