SpaceX Jumps 7.8% as Musk Floats Tesla Merger and $500B Revenue Target
SPCX sits 51% above its 52-week low of $104.83 on elevated volume (2.2× avg).
Summary
SpaceX closed up 7.8% Wednesday after its Q3 report showing $14.6 billion in quarterly revenue was followed by a call where Musk said the company is now profitable, predicted more than $500 billion in annual recurring revenue by the end of 2027, and confirmed SpaceX and Tesla have formed special committees of independent directors to explore a combination. Musk, CEO of both, said he would not participate in the discussions and that no terms have been agreed. A SpaceX-Tesla deal would be the largest merger ever given Tesla's roughly $1.5 trillion valuation against SpaceX's roughly $2 trillion. The broader tech tape also got help from Nvidia, whose CEO Jensen Huang said Vera Rubin systems are already in use at Microsoft's cloud arm and that the supply chain can build thousands a week; Nvidia rose 2.5%. The Nasdaq gained 1.1%, recovering most of Friday's selloff. The merger question is the one that matters for SPCX holders: a combination would tie the stock to Tesla's auto and robotics economics and invite heavy regulatory review on size alone.
At the time of this announcement, SPCX was trading at $158.62 on NASDAQ in the Technology sector, with a market capitalization of approximately $2.2T. The 52-week trading range was $104.83 to $225.64. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Dow Jones Newswires.