Tesla beats forecasts; Musk floats SpaceX merger as shares jump

· Tech · United States

Tesla reported better-than-expected third-quarter results on Oct 21 even as automotive revenue declined, while operating income fell 56 percent year on year as AI and research and development costs climbed. On the earnings call, CEO Elon Musk said there was "a lot of merit" to combining Tesla with SpaceX, and that special committees at both companies were exploring the idea; any deal would need approval from 50 percent of Tesla shareholders. SpaceX shares jumped 10 percent after its own earnings beat, and Musk said the company is "hounded relentlessly by every hyperscaler" to rent compute. He also said he expects to begin delivering Optimus robots to customers by the end of 2027.

Why it matters：A combined Tesla-SpaceX would be the largest merger in history and would blur the line between cars, rockets and AI compute, a structure regulators and investors would scrutinise closely.

Key points

  • Tesla's operating income fell 56 percent year on year.
  • Any merger would need approval from 50 percent of Tesla shareholders.
  • Musk expects Optimus deliveries to customers by end-2027.

Sources (original reporting)

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