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TSLAmergers and acquisitionsSpaceXearnings
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Related tickers and likely impact
TSLA
▲ Likely positiveTesla, Inc.
Relevance: high
| Market | US stocks |
|---|---|
| Sector | Consumer Discretionary |
| Industry | Automobile Manufacturers |
| Market cap | $1.4T |
| Close on 10/21/2026 | 386.55 |
| Change that session | +3.44% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
Related news
- Why SpaceX Stock Dropped After Earnings
SpaceX shares rose 7.8% yesterday after the company reported earnings of $0.35 per share, more than double the $0.16 analysts had expected. Its Super Intelligence business, formerly AI, turned profitable, with sales up 830% and a quarterly profit of $431 million. Today the stock is down 5.8% as of 11:45 a.m. ET. Possible reasons include a potential merger with Tesla, regulatory risk tied to alleged Starlink speed slowdowns in Ukraine, and cash burn that has exceeded $35 billion year to date.
- 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.
- Zacks Investment Ideas feature highlights: SpaceX, Tesla, United Airlines, Carnival, Maersk and Deere
SpaceX shares rose as much as 12% on Wednesday after Q3 results beat estimates: EPS of $0.35 against a Zacks consensus of $0.10, and revenue up 161% year over year to $14.57 billion versus $12.53 billion expected. Net income reached $4.4 billion, compared with a $1.1 billion loss a year earlier, with Connectivity revenue, which includes Starlink, at $5.25 billion and 13.6 million consumer subscribers. SpaceX reiterated a goal of $100 billion in annual recurring revenue by end-2026, and Q1 2027 revenue guidance of $33–37 billion was well above the roughly $22 billion Wall Street expected. Musk said SpaceX and Tesla have set up special committees to explore a possible merger, though no deal is certain. The article notes the stock is still more than 25% below its $225 all-time high, with an average Zacks price target of $227 from 36 analysts.
- 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's Q3 profit drops as it prepares for possible merger with Musk's other public company, SpaceX
Tesla's third-quarter net income fell 44% to $787 million, or 22 cents per share, but its free cash flow surged to $1.5 billion, surprising analysts who expected the company to burn cash amid heavy AI spending. Excluding certain items, earnings of 48 cents per share beat estimates by 3 cents, while revenue was roughly flat at $28 billion and slightly short of forecasts. Capital spending doubled to $4.7 billion, but Tesla cut its full-year 2026 capital spending estimate from $25 billion to $20 billion, raising questions about future growth. Tesla also said 75% of vehicles sold in North America included its driver-assistance software subscription, and it earned 18.1 cents per dollar of car sales, up almost 3 cents from a year earlier. Musk said special committees at Tesla and SpaceX are discussing a possible merger but declined to discuss it further on Tesla's earnings call.
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