SpaceX Shares Volatile After Strong Earnings and Tesla Merger News
SpaceX shares fluctuated following strong third-quarter earnings and the announcement that special committees are evaluating a potential merger with Tesla.
Shares of Space Exploration Technologies Corp. experienced significant volatility on October 22, 2026, after an initial surge triggered by strong third-quarter earnings. The company reported a profit of $0.35 per share, more than double the $0.16 predicted by Wall Street. Growth was driven largely by its Super Intelligence business, which generated $431 million in quarterly profit with sales increasing 830%.
During a call on October 20, founder Elon Musk announced that SpaceX and Tesla have each established special committees to evaluate a potential merger, though he noted a deal is not guaranteed. While the news initially pushed shares up 8.5% over the week, the stock fell 5.8% on October 22. Investors expressed concern over Tesla's high earnings multiples and a recent 5% profit decline, as well as SpaceX's year-to-date cash burn exceeding $35 billion.
Additional regulatory risks have emerged following allegations that SpaceX ordered a slowdown of Starlink connection speeds in Ukraine. Meanwhile, other space-sector companies, including Rocket Lab and Planet Labs, have seen double-digit losses since April 20 despite reporting record backlogs. Analysts indicate these firms must convert backlogs into profit to mirror the growth seen at SpaceX.
