Wall Street weighs SpaceX earnings, capex, and possible Tesla merger

SpaceX reported third-quarter earnings that beat expectations, with EPS of $0.45 versus $0.13 expected and revenue of $14.5 billion, a 161% increase year-over-year, marking its first profitable quarter with net income of $4.4 billion. Shares surged up to 12% following the announcement. Analysts are questioning the company's aggressive capital expenditure plans, projecting $35 billion to $40 billion in spending next quarter, roughly double the previous period, which raises concerns about sustainability. Musk's revenue target of $500 billion to $1 trillion by next year far exceeds Wall Street consensus, prompting skepticism about feasibility. A potential SpaceX-Tesla merger is being explored, with committees formed and a possible all-stock deal led by SpaceX, though regulatory hurdles could delay completion. Analysts suggest Tesla shareholders might accept a premium near $480 per share, with further details expected on Tesla's earnings call.