On the third-quarter earnings call, Elon Musk set a goal of reaching a $1 trillion annualized revenue run rate by December 2027, compared with SpaceX's total revenue of under $19 billion last year. In the third quarter, SpaceX generated $14.6 billion in revenue, up 161% year over year, with its Super Intelligence (SI) division growing 830% to $7.6 billion and AI making up 52% of sales. AI computing capacity rose to 1.7 GW from 0.6 GW a year earlier, and Musk expects 2.5 to 3 GW by December and roughly 10 GW more during 2027. The article estimates that reaching the target would require AI revenue per gigawatt to more than triple from today's level and Starlink and Space revenue to triple, so it requires far more than data center expansion.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Keywords
Open a keyword to see other news on the same topic.
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/21/2026 | 386.47 |
| Change that session | +3.41% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News
SpaceX reported third-quarter adjusted EPS of $0.45 on sales of $14.58 billion, far above analyst averages of $0.13 and $12.72 billion. Revenue rose 161% year over year and net income swung to $4.4 billion from a $1.1 billion loss a year earlier; Starlink sales grew 69% to $5.25 billion, while the superintelligence segment rose about 830% to $7.56 billion. The company guided first-quarter 2027 sales to $33–37 billion, and Musk said he expects annual recurring revenue of $500 billion–$1 trillion by the end of next year. On the call, Musk said special committees had been formed to explore a merger with Tesla, that he could not take part due to conflicts, and that merging was a good idea, though shareholder approval equal to 50% of total shares would be a significant hurdle.
- SpaceX Shoots Up Post Q3: Is More Upside Ahead for SPCX ETF?
SpaceX shares rose about 8% on Wednesday after third-quarter results beat expectations, driven by rapid growth in its AI business and satellite internet operations. Revenue jumped 161% year over year to $14.58 billion, above the Zacks Consensus Estimate of $12.59 billion, and adjusted earnings per share came in at 45 cents versus an expected 11 cents. The AI division, called Super Intelligence, grew revenue to $7.56 billion from $813 million a year earlier and turned profitable, while Connectivity revenue, which includes Starlink, rose 69% to $5.25 billion. Capital expenditures reached $19.59 billion, including $16.44 billion for AI infrastructure, and the company posted net income of $4.4 billion versus a $1.05 billion net loss a year earlier. CEO Elon Musk called a potential merger with Tesla attractive but stressed that a deal is far from certain.
- Elon Musk: SpaceX Revenue Could Hit “Somewhere Between $500 Billion and a Trillion” by 2027
On the earnings call, Elon Musk said SpaceX’s annual recurring revenue could reach between $500 billion and a trillion by the end of 2027, a goal that requires building compute faster than almost any company has tried. SpaceX posted its first quarterly profit of $4.4 billion in the latest quarter, versus a $1.1 billion loss a year earlier, with revenue up more than 160% to $14.6 billion; capex of $19.6 billion could reach $40 billion next quarter. Management says new compute installations pay back in under a year if prices hold, but the target of 13 GW by end-2027, up from 1.7 GW, depends on power, cooling, and NVIDIA’s Vera Rubin systems arriving on time. Shares rose 7.79% to $159.31, and a Tesla combination would need approval from 50% of Tesla’s outstanding shares, a hard bar given many holders never vote.
- Tesla's profit drops as it explores a possible merger with Musk's other public company, SpaceX
Tesla's third-quarter net income attributable to shareholders fell 43% from a year earlier to $787 million, or 22 cents per share, while revenue was essentially flat at $28 billion, slightly below the analyst average of $28.3 billion. Excluding certain items, earnings per share of 48 cents beat expectations by 3 cents. Free cash flow was positive at $1.5 billion despite heavy AI spending, though it was down 62% year over year, and capital spending more than doubled to $4.7 billion. Tesla cut its 2026 capital spending forecast to about $20 billion from more than $25 billion, while automotive gross margin excluding regulatory credits rose to 18.1% from 15.4%. Musk said Tesla and SpaceX have formed special committees to explore a possible merger, with no terms agreed, and Tesla shares fell 3.2% after hours after rising 3.6% in the regular session.
- Tesla profits drop but top analyst estimates
Tesla's third-quarter profit fell to $787 million, down 42.7% from a year earlier, as Elon Musk's electric vehicle maker sharply increased spending on artificial intelligence, robotics and autonomous transport. Revenue was essentially flat at $28 billion, while revenue from regulatory credits and from energy and storage declined and research and development spending more than doubled. The bigger headline was the disclosure that special committees at Tesla and SpaceX are considering a merger, which lifted both companies' shares and pushed Musk's wealth back to $989 billion according to Forbes.
- Tesla Earnings Mixed; Elon Musk Looms With SpaceX, Robotaxi, Optimus In Focus (Live Coverage)
Related markets
Latest news
- Musk's wants to merge SpaceX and Tesla: Here's what to know
Musk said SpaceX and Tesla have formed special committees to study a merger, which would be worth about $3.5 trillion combined and would be the largest corporate deal in history. SpaceX, valued at about $2 trillion after a record listing this year, absorbed Musk's AI startup xAI in February, while Tesla is valued at about $1.5 trillion. Musk holds about 82 percent of SpaceX's voting power but only about 20 percent at Tesla. Dan Ives puts the odds of a deal at 90 percent by early 2027, though Musk called the requirement of a majority of all Tesla shares 'quite a high hurdle'. Loyal retail investors hold an estimated 25 to 27 percent of Tesla shares, and legal obstacles appear slight because both companies moved their incorporation to Texas from Delaware.
- CoreWeave and Nebius Stocks Are Crashing. Time to Buy the Dip?
Shares of Nebius and CoreWeave each fell 25% in the week of October 12 to 16. The sell-off stems from the yield on CoreWeave's debt in the secondary market surging to 15%, versus roughly 5% on Treasuries, which pushes the debt into 'distressed' territory and signals doubts about its ability to meet obligations. Nebius sold off in sympathy as a fellow neocloud company. The bigger concern is that both companies must keep issuing debt to fund data centers, and if yields are high at issuance, the assumption of nearly unlimited cheap capital could be challenged. The author says it is unclear whether now is the time to buy.
- Disney’s multiplatform Super Bowl plan frustrates ABC affiliates
ABC station owners are irritated that Disney is airing the Super Bowl across several platforms, including Disney+, ESPN2, NFL Network and ESPNU, even though the game is already on ABC and ESPN. A station group CEO estimates that the combined platforms could cut broadcast ad revenue by up to 35% compared with last year. Local affiliates typically earn about 3% of annual ad revenue from the Super Bowl and pay network owners reverse retransmission fees, but Disney+ lacks geofenced ad insertion, so affiliates cannot sell ads to streaming viewers. Disney says national commercials will be identical on all platforms and that streaming major live events is standard industry practice. Super Bowl LX drew 125.6 million viewers in February.
- Meta’s deal to keep Zuckerberg in California adds fuel to wealth tax debate ahead of election
Meta says Mark Zuckerberg will remain in California for eight years and has created a new stock plan that could help cover his taxes if Proposition 40, a 5% tax on Californians worth over $1 billion, passes on Election Day on Nov. 3. According to a filing released with its third-quarter earnings, Meta will issue non-voting Class C shares starting in January, and Zuckerberg can sell or transfer up to 20% of the shares granted to him without affecting his majority voting control. The filing says Zuckerberg’s leadership is crucial to the company’s growth and its AI ambitions, including Meta Superintelligence Labs. Most of the tech industry opposes the measure, while a recent Citrin-Politico poll found 46% in favor and 43% against, suggesting it may fall short of the majority support it needs.
- Nasdaq sell-off: A momentum unwind 'for the record books'
Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management, calls Thursday’s sell-off in the Nasdaq Composite (^IXIC) a momentum unwind “for the record books.” He says the market spent the first half of 2026 driven by a beta and momentum trade led by semiconductors, but in the third quarter, as rates rose, money shifted into quality stocks. He does not think the sell-off is justified by fundamentals, arguing that institutional portfolio managers swapping out of factor positions can drag down whole baskets of stocks. In semiconductors, spot rental rates for Nvidia Blackwell chips are higher than a month ago, showing tightening compute supply, even as financing costs rise and investors worry about neocloud business models and the rising cost of insuring their bonds.
- Dune launches real-time data feeds covering 200 onchain trading venues
Blockchain analytics platform Dune has launched real-time market data feeds covering more than 200 onchain trading venues, aiming to bring this data into the systems of traditional financial institutions. The feeds draw trade data from 12 blockchains, including Ethereum, Solana and Base, about one second after execution, covering both spot trading on decentralized exchanges and perpetual futures on Hyperliquid and Lighter. Early clients include quant funds, market makers, asset managers and bank trading desks, which use the data to assess liquidity and compare prices, though Dune did not name them. Meanwhile, the tokenized stock market has grown sharply, with distributed value reaching $3.58 billion, but 16 companies, including Microsoft, Alphabet and Goldman Sachs, have objected to their shares being traded on OKXICE’s proposed platform, and liquidity remains fragmented.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.