Elon Musk said he wants to merge SpaceX and Tesla, two companies he said are worth a combined $3.5tn (£2.6tn). Both firms have set up committees of independent directors to study the idea at shareholders’ request, while Musk, who has major stakes in each, is excluded from the talks. He said there was “a lot of merit” to combining them, citing gains from co-operating on AI software, chip design, the TeraFab chipmaking plant and robotics, but cautioned that a merger should not be seen as a certainty because shareholders must support it. Tesla shares rose 1% after the announcement, while SpaceX shares gained more than 6% after better-than-expected quarterly results, with revenue up 161% to $14.6bn and a $4.4bn profit driven by its AI business.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on Yahoo Finance ↗
Related tickers and likely impact
TSLA
• NeutralTesla, Inc.
Relevance: medium
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/20/2026 | 373.77 |
| Change that session | +1.55% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- SpaceX, Tesla Form Independent Committees To Explore Merger: Elon Musk Says Deal ‘Not A Certainty’
SpaceX and Tesla have formed special committees of independent directors to explore a possible combination, Elon Musk said on SpaceX's third-quarter earnings call. Musk, who leads both firms, is excluded from the talks, and the committees have not agreed on any terms; he said a merger is not a certainty and would need broad shareholder support, with Tesla approval requiring a majority of all outstanding shares. SpaceX reported third-quarter revenue of $14.58 billion versus an estimated $13 billion and EPS of $0.35 against $0.13 expected, driven by superintelligence segment growth. It had $63 billion in backlog, of which $42 billion is expected to convert within a year, and guided to $35–$40 billion in fourth-quarter capex and $33–$37 billion in first-quarter 2027 revenue. SPCX closed near $148, above its $135 IPO price but below its all-time high near $226.
- Dow Jones Futures Rise, AI Stocks Jump On SpaceX, Supermicro; Tesla, Meta On Deck
- Elon Musk - led SpaceX revenue soars 161 %
SpaceX revenue rose 161% over the three months ending September from a year earlier, as its AI and Starlink businesses expanded sharply. The company posted a profit of $4.40 billion, reversing a $1.05 billion loss a year earlier, and shares rose nearly 4% after hours to about $153.30. Connectivity revenue, which includes Starlink, reached $5.2 billion, up 69%, while the AI unit, after a $1.26 billion operating loss the previous quarter, posted $431 million in operating income. A day earlier, Elon Musk pledged to give one SpaceX share to every American child, a giveaway estimated at nearly $11 billion, or about 1.1% of his wealth. The report also notes concerns from policymakers and investors about AI's impact on jobs and the economy.
- Tesla’s stock rises as Elon Musk drops new clues about a possible SpaceX merger
- CEO Elon Musk Just Gave SpaceX Investors Great News
SpaceX reported third-quarter revenue of $14.6 billion (up 161%) and net income of $4.4 billion, versus a $1.1 billion net loss a year earlier, with adjusted EBITDA of $8.8 billion (up 306%), all above analyst expectations. Its Super Intelligence (SI) unit posted revenue above $7.5 billion, beating estimates by over $1 billion, while Starlink subscribers grew by 1.6 million to 13.6 million. Total capital expenditures were nearly $19.6 billion, with $16.4 billion allocated to SI. Musk expects compute capacity of 2.5–3 GW by year-end, up from 1.7 GW, says he feels confident of bringing another 10 GW online in 2027, and expects annual recurring revenue of $500 billion to $1 trillion by the end of 2027. Shares climbed nearly 5% in after-hours trading.
- Dow Jones Futures Rise; SpaceX Crushes Views, Eyes Tesla Merger; Supermicro Reports Blowout Sales
Related markets
Latest news
- 'Time Bomb' in Southeast Asia's Only Trillion-Dollar Economy: Stocks Plunge, Investors Flee, Unemployed Youth Turn to Motorbike Taxis, Former Minister Warns Economy Nears Brink
In Southeast Asia's only trillion-dollar economy, a 28-year-old IT graduate now works as a motorbike ride-hailing driver earning about $220 a month, while the middle class has shrunk roughly 19% from its peak and youth unemployment sits near 17%. After MSCI warned it could drop the market from its reference indexes, Indonesian stocks fell more than 11% on October 16, their steepest one-day drop since the 1998 Asian financial crisis, and slid nearly 4% more on October 19. High oil prices, rising U.S. interest rates and costly subsidies, such as free meals for over 80 million students at an estimated $30 billion a year, are adding pressure on the rupiah and the budget. Ferry Latuhihin, former chief economist at International Indonesia Bank, calls the situation a 'time bomb', while former trade minister Thomas Lembong warns the country is getting ever closer to the brink. Phillip Wool of Rayliant says the risk is concentrated in Indonesia.
- Could Investing $5,000 in Redwire Stock Make You a Millionaire?
Redwire shares, which listed via a SPAC merger, are down about 21% over the past five years despite brief rallies. In the second quarter, revenue jumped roughly 89% to a record $117.1 million, and the backlog reached $542.1 million. The defense technology segment, boosted by the 2025 acquisition of Edge Autonomy, surged to $61.9 million, and the article argues this business will drive most of future growth. Gross margin improved from negative 30.9% to 27.8%, while the operating loss narrowed from $91.9 million to $22.1 million. The article notes Redwire is still far from sustainable profitability and that the trend may depend on sustaining performance after acquisitions.
- Wall Street diverges Tuesday , industrials advance , techs slip
Wall Street diverged on Tuesday, with industrials rising sharply while tech lagged, although AI stocks firmed after recent sell-offs. The S&P 500 closed at 7,712.75, up 0.29%, while the Dow Jones Industrial Average rose 1.02% to 52,497.42 and the Nasdaq Composite slipped 0.02% to 26,424.82. Direxion's Jake Behan said the market had tolerated higher rates because of the AI growth story, but that relationship began to be tested last week, and upcoming hyperscaler reports on ROI, data centre spending and 2027 capex would matter more than headline earnings. The U.S. dollar weakened against major currencies, European indices mostly fell, and Asian markets diverged: Japan's Nikkei 225 dropped 1.30% and South Korea's KOSPI fell 3.73%, while Indonesia's IDX Composite jumped 5.65%.
- Wall Street diverges Tuesday , industrials advance , techs slip
Wall Street diverged on Tuesday, with industrials rising sharply while tech lagged, although AI stocks firmed after recent sell-offs. The S&P 500 closed at 7,712.75, up 0.29%, while the Dow Jones Industrial Average rose 1.02% to 52,497.42 and the Nasdaq Composite slipped 0.02% to 26,424.82. Direxion's Jake Behan said the market had tolerated higher rates because of the AI growth story, but that relationship began to be tested last week, and upcoming hyperscaler reports on ROI, data centre spending and 2027 capex would matter more than headline earnings. The U.S. dollar weakened against major currencies, European indices mostly fell, and Asian markets diverged: Japan's Nikkei 225 dropped 1.30% and South Korea's KOSPI fell 3.73%, while Indonesia's IDX Composite jumped 5.65%.
- Amgen vs . Bristol Myers Squibb : Which Healthcare Stock Is a Better Buy in 2026 ?
This comparison of Amgen (AMGN) and Bristol Myers Squibb (BMY) uses FY 2025 financials. Amgen reported revenue of about $36.8 billion, up roughly 10%, net income of about $7.7 billion (net margin around 21%) and free cash flow near $8.1 billion; BMY posted revenue of about $48.2 billion, nearly flat, net income of about $7.1 billion (net margin about 14.6%) and free cash flow of about $12.8 billion. The article notes Amgen faces drug pricing pressure, an ongoing IRS tax dispute and biosimilar competition, while BMY depends heavily on Eliquis and faces generic competition and government pricing constraints. It concludes BMY trades at a significantly lower valuation than Amgen, though much of its expected difficulty may already be priced in.
- Wall Street diverges Tuesday , industrials advance , techs slip
Wall Street diverged on Tuesday, with industrials rising sharply while tech lagged, although AI stocks firmed after recent sell-offs. The S&P 500 closed at 7,712.75, up 0.29%, while the Dow Jones Industrial Average rose 1.02% to 52,497.42 and the Nasdaq Composite slipped 0.02% to 26,424.82. Direxion's Jake Behan said the market had tolerated higher rates because of the AI growth story, but that relationship began to be tested last week, and upcoming hyperscaler reports on ROI, data centre spending and 2027 capex would matter more than headline earnings. The U.S. dollar weakened against major currencies, European indices mostly fell, and Asian markets diverged: Japan's Nikkei 225 dropped 1.30% and South Korea's KOSPI fell 3.73%, while Indonesia's IDX Composite jumped 5.65%.
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.