Musk backs SpaceX-Tesla merger as rocket firm turns profit

Elon Musk said Tuesday he would support a merger of SpaceX and Tesla, as SpaceX reported its first quarterly profit since going public, driven by AI cloud computing deals. Shares in SpaceX rose nearly five percent in after-hours trading following his comments. Musk said independent director committees at both companies are studying the idea at shareholders' request, but he cannot participate due to a conflict of interest. SpaceX posted net income of $4.4 billion for July-September, up from a $1.1 billion loss a year earlier, with revenue jumping 161 percent to $14.6 billion. The AI division, called "Super Intelligence," drove the turnaround with revenue rising to $7.6 billion, surpassing Starlink as the largest sales source. SpaceX invested $19.6 billion in the quarter, and Musk cautioned any deal would need majority support of all Tesla shares, calling it "quite a high hurdle."