# Elon Musk Supports Potential SpaceX and Tesla Merger SpaceX reports first quarterly profit as Musk explores a strategic tie-up with Tesla. - **Source:** [Technology News Today, Latest Tech News | The Hindu](https://www.thehindu.com/sci-tech/technology/) - **Published:** 2026-10-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/19db64b2-f715-4c43-ae59-f1bc1114a701 ## Strategic Merger Consideration Elon Musk has expressed support for a potential merger between SpaceX and Tesla. Independent committees at both companies are currently evaluating the feasibility of this combination. Musk noted that he cannot participate in these discussions due to a conflict of interest, emphasizing that a deal is not yet a guaranteed outcome. ## Financial Turnaround Milestone SpaceX reported a net income of 4.4 billion dollars for the July-September period, marking a significant recovery from a 1.1 billion dollar loss a year ago. This profitability follows the company's June 12 IPO on the Nasdaq, which raised 85.7 billion dollars. The firm previously posted a 541 million dollar loss. ## AI Division Dominance The AI unit, branded as Super Intelligence, has become the primary revenue driver, generating 7.6 billion dollars. This figure represents a nine-fold increase compared to the previous year, officially overtaking the Starlink satellite business. Growth was supported by the acquisition of Cursor and widespread adoption of the Grok chatbot platform. ## Major Cloud Partnerships SpaceX has secured significant cloud computing agreements to monetize its infrastructure. Anthropic committed to paying nearly 45 billion dollars over three years for access to Colossus data centers. Additionally, Google signed a deal in June to pay 920 million dollars monthly, starting in October, to utilize SpaceX's expanding computing capacity. ## Infrastructure Scaling Challenges SpaceX invested 19.6 billion dollars during the quarter, with 16.4 billion allocated specifically to AI development. Computing capacity reached 1.7 gigawatts, with plans to add 10 gigawatts by 2027. Musk identified power, cooling, and electrical equipment as the primary limiting factors for scaling this massive infrastructure to meet future demand. ## Starlink Performance Metrics Starlink revenue grew 69 percent to 5.2 billion dollars, supported by a subscriber base of 13.6 million users. Despite this growth, the average monthly revenue per consumer declined to 69 dollars from 83 dollars a year earlier. The unit remains a core component of the company's broader space-based internet strategy. ## Operational Hurdles Ahead Any potential merger faces a high hurdle, requiring approval from a majority of all Tesla shares rather than just those cast in a vote. Musk described the process as navigating a minefield. The companies believe they could gain significant advantages by integrating AI software, chip design, robotics, and space-based computing. ## Future Integration Potential The synergy between SpaceX and Tesla could redefine their technological roadmap. By combining resources, the entities aim to leverage shared expertise in robotics and advanced computing. While the committees continue their assessment, the market reacted positively, with SpaceX shares rising nearly five percent in after-hours trading following Musk's public comments. ## Sources covering this story - https://www.thehindu.com/sci-tech/technology/elon-musk-says-he-backs-spacex-tesla-merger-as-rocket-firm-turns-profit/article71606098.ece — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._