SpaceX (SPCX) shares fell 9.1% on Thursday, Oct. 22, as AI funding concerns and uncertainty over a potential Tesla merger pressured the stock. The S&P 500 dropped 1.2% and the Nasdaq Composite 2.6%. Higher oil prices add to inflation worries that could raise borrowing costs, while AI expansion requires heavy capital spending. SpaceX's quarterly report showed 161% top-line growth but capex above $16 billion, and negative free cash flow suggests the company may need to borrow more. Meta's negative free cash flow also fueled concerns about funding AI infrastructure. Reuters reported that some people in the Tesla talks worry Musk's endorsement could bring scrutiny and delays, while others see a merger as a net negative for SpaceX shareholders; the talks are preliminary with no terms set.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on aol.com ↗
Keywords
SpaceXElon MuskTeslamergers and acquisitions
Open a keyword to see other news on the same topic.
Related news
- Stocktwits Space Race Weekly: RKLB, VSAT Beat SPCX With Modest Gains — ASTS And PL Sink Deeper
This week RKLB rose 0.8%, VSAT edged up 0.3% and SPCX fell 0.9%, while ASTS dropped 4.7% and PL lost 3.5%. SpaceX reported revenue up 161% to $14.58 billion, net income of $4.4 billion and 13.6 million Starlink subscribers, and Musk said a Tesla merger is up to the special committees of both companies. Rocket Lab outlined new test capacity to support more than 100 launches in backlog, and said Neutron's debut would move into 2027. Viasat said its Maxwell satellite reached orbit and that the work supports NASA awards totaling $81 million, and asked the FCC to reject AST SpaceMobile's overseas spectrum request. AST targeted initial, intermittent coverage before year-end in the United States, Canada, Japan, the UK and Saudi Arabia, and said more than 3,000 U.S. coverage cells were enabled.
- What Is SpaceX (SPCX) Considering With A $3.5 Trillion Merger Review?
The boards of Space Exploration Technologies (NasdaqGS: SPCX) and Tesla are reviewing a potential merger valued at US$3.5 trillion across their businesses. The combined group would bring together electric vehicles, orbital launch services, AI data centers and satellite connectivity. Both boards are studying transaction structures and governance options, and no binding agreement had been announced as of 22 October 2026. Space Exploration Technologies runs satellite-based broadband services across the US and several international markets, and its market capitalization is US$2.2 trillion.
- Why SpaceX Stock Dropped on Thursday | The Motley Fool
Space Exploration Technologies (SPCX) shares fell 9.1% on Thursday, Oct. 22, as concerns over AI funding and uncertainty about a potential Tesla merger weighed on the stock. The S&P 500 and Nasdaq Composite dropped 1.2% and 2.6%, respectively. Higher oil prices add to inflation concerns, which can push interest rates and borrowing costs up. SpaceX reported 161% top-line growth but capital expenditures of more than $16 billion, and management projected $35 billion to $40 billion more in Q4; with negative free cash flow, the company will likely need to borrow more. Reuters reported that some people involved in the Tesla talks worry Musk's endorsement could bring unwanted scrutiny and delays, though the talks remain preliminary with no terms set.
- Why SpaceX Stock Dropped on Thursday | The Motley Fool
SpaceX (SPCX) shares fell 9.1% on Thursday, Oct. 22, as worries about AI funding and the uncertain prospect of a Tesla merger weighed on the stock. The S&P 500 dropped 1.2% and the Nasdaq Composite 2.6%. Higher oil prices feed inflation concerns that could push up interest rates and borrowing costs, an issue for companies building AI data centers. SpaceX's Tuesday report showed 161% top-line growth but capital expenditures above $16 billion, with management projecting another $35 billion to $40 billion in Q4 and negative free cash flow, so more borrowing may be needed. Reuters reported that some people involved in the Tesla talks fear Musk's endorsement could bring scrutiny and delays, while others see a merger as a net negative for SpaceX shareholders; the talks remain preliminary with no terms set.
- Here's What $10,000 Invested in SpaceX and Tesla Could Be Worth in 2030
The article models a $10,000 split between 14 Tesla shares and 34 SpaceX shares, assuming SpaceX acquires Tesla in an all-stock deal at a 30% premium with 3.16 SpaceX shares per Tesla share, leaving investors with about 68 SpaceX shares. Using 2031 revenue consensus of $331 billion for Tesla and $830.8 billion for SpaceX, a 10x forward price-to-sales multiple implies a combined value of $11.6 trillion, or about $452 per share in 2030 and over $30,700 for 68 shares. The author calls this a 3x-plus return over several years, but notes that the merger may not happen and revenue may fall short. Prediction market Kalshi puts the odds of a merger at 57% before April 2027 and 77% before the end of 2028, and Barclays analyst Dan Levy thinks an announcement could come before Tesla's December 6, 2026 annual meeting.
- What would happen if SpaceX and Tesla merged?
According to the article, a merger of SpaceX and Tesla would create a company with a market value of $3,500 billion and strengthen Elon Musk's control over Tesla. On October 20, Musk said both companies had set up special committees to discuss a possible merger at shareholders' request, calling it “a good idea.” Supporters argue a combined company could collaborate on AI software, chip design, robotics, space launches and internet connectivity, simplify decision-making, and give shareholders of each company access to the other's businesses. The two firms already work together on Terafab, a project to produce advanced chips that Musk expects could start production from late 2028. The biggest hurdles are geopolitical and regulatory: SpaceX is a major contractor for the US Department of Defense, intelligence agencies and NASA, while Tesla's Shanghai factory ties it to China, so the merged firm could face closer scrutiny in both countries.
Related markets
Latest news
- Big Tech's AI spending has Wall Street worried
Dan Flax, Senior Research Analyst at Neuberger, discusses investor concerns over massive AI infrastructure spending by hyperscalers. He notes that cloud businesses are accelerating on AI workloads, but capital needs are rising, prompting debt issuance and an equity raise by Google earlier this year. On Meta, the company raised the low end of its total spending forecast to $135–145 billion this year and has about $825 billion in future spending commitments, which weighed on the stock. Flax argues the core digital advertising business still generates robust operating cash flow, and customers want to rent Meta's compute and use its models, so he expects more visible growth over the coming months that could ease market concerns.
- Senate Democrat Probes Tether Payments to Ex-White House Crypto Adviser’s Firm
Sen. Richard Blumenthal, D-Conn., asked Tether to provide records of its dealings with Bo Hines and his consulting firm Nxum by Nov. 3. The Wall Street Journal reported that Nxum earned $6.3 million from a Tether deal struck in May 2025, while Hines, who kept a one-third stake in Nxum, helped craft the GENIUS Act. A Nxum representative said Hines was not involved in the deal and received no Tether-derived funds while in government, and Tether said external counsel found no evidence of wrongdoing. Blumenthal argued the payment structure implicates federal ethics, anticorruption and lobbying laws.
- Dow and Small Caps Climb Weekly While Nasdaq Slips on Megacap Earnings Charges
For the week, the Dow gained 0.64% and the Russell 2000 rose 2.07%, while the Nasdaq Composite fell 0.45% and the S&P 500 slipped 0.22%. The Nasdaq closed at 26,022.45, dragged down by megacap tech, while the Dow closed at 52,337.54. The VIX rose to 19.40 and the VXN to 28.13, gold fell 3.47% and silver 4.90% on the week, and the 10-year Treasury yield eased 11 basis points to 4.99%. Meta reported third-quarter revenue of $64.60 billion, up 26%, but net income of $9.86 billion reflected a $9.89 billion charge tied to an agreement with 52 state attorneys general over teen mental health and social media litigation.
- Scalpers offer Apple iPhone Duo buyers hundreds extra outside Beijing launch
On the day Apple globally launched the iPhone Duo, its first foldable phone, scalpers outside the Sanlitun store in Beijing offered to pay customers an extra 3,000 Chinese yuan ($448) to buy their newly purchased phones. One scalper said tight supply could let the Duo sell at a higher price for half a month. According to Counterpoint Research, China is the single largest foldable market globally, and about 100 people were in line at the Sanlitun store early on launch day. Apple said walk-in purchases would not be available on launch day in mainland China, online orders were limited to two phones each, and one buyer's online delivery timeline stretched to January 2027. Apple said a version of Apple Intelligence will begin beta testing this month in mainland China, while Chinese official media cited former CEO Tim Cook as saying the revamped Siri AI would not yet be available in the country.
- Musk: Optimus and Cybercab “Will Be the Vast Majority of Tesla’s Value” as Earnings Loom
Elon Musk said on X that Optimus and Cybercab will be the vast majority of Tesla's value, ahead of third-quarter results due after the close on Oct. 21. The article notes Tesla's operating margin fell from 16.8% in 2022 to 4.6% in 2025 and 1.4% in the second quarter of 2026 as AI and research spending climbed, while the stock trades at 189x forward earnings versus a five-year average of 107.7x. Gary Black of The Future Fund says earnings revisions are negative, and the article points to robotaxi competition and Cybercab's many limitations as further risks. The author argues the valuation prices in robots and robotaxis, and wants to see Cybercab running as a real fleet first.
- Gold Breaks Below $4,000 as Oil Surge Fuels Fed Rate Fears
Gold slipped below $4,000/oz on Thursday night before buyers pushed it back above that level on Friday, though rebounds have stalled near $4,025. Brent crude rose to a five-month high of nearly $115/barrel and WTI broke above $100/barrel on tension around key Middle East shipping lanes, reinforcing expectations that interest rates could rise and stay elevated for longer. Lower-than-expected weekly jobless claims, a stronger US Dollar and a tech-led stock selloff also weighed on non-yielding gold. Next week brings Wednesday's FOMC decision, followed by the PCE inflation reading and the first estimate of Q3 US GDP.
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.