SpaceX and Tesla in merger talks, Musk calls idea 'good'

Elon Musk confirmed that SpaceX and Tesla are in formal talks about a potential merger, calling it a "good idea," with negotiations reportedly beginning in recent weeks and possibly resulting in SpaceX acquiring Tesla. SpaceX reported its first profit since going public, with third-quarter revenue surging 161% to $14.58 billion, driven by AI-related data center capacity rentals to companies like Anthropic and Google. Musk projected annual recurring revenue of $500 billion to $1 trillion by end of 2027. Musk, who owns nearly 20% of Tesla and just under 50% of SpaceX, noted that special committees from both companies have not yet reached an agreement on terms. Tesla shares rose 1.8% in after-hours trading following the announcement.