WORLDTECHSpaceX shares rise 9% after strong quarterly results as Musk raises Tesla merger
SpaceX shares rose 9% in premarket trading after the company reported third-quarter results that beat analyst expectations. Elon Musk, who leads both SpaceX and Tesla, suggested the two companies could merge, while saying no definitive terms have been agreed.
Quarterly results beat expectations
SpaceX reported third-quarter revenue of $14.58 billion, a 161% increase compared with a year earlier. The company also recorded its first quarterly profit since becoming a public entity.
The earnings report exceeded analyst expectations, which lifted the stock in premarket activity.
Musk hints at a Tesla combination
Elon Musk, chief executive of both SpaceX and Tesla, hinted at a possible merger between the two companies. He stressed that no definitive terms have been agreed.
SpaceX is based in Hawthorne, while Tesla, an automotive and solar company, is based in Palo Alto.
Prediction markets weigh the odds
The speculation has prompted discussion on prediction markets about how likely an official merger announcement is. Increased merger talk could bring market volatility and shifts in strategy, affecting investor sentiment across the sector.
Open questions
- Will SpaceX and Tesla announce a formal merger agreement?
- What terms would any combination of the two companies involve?