SpaceX Reports First Profit and Explores Tesla Merger
Space Exploration Technologies Corp. reported a $4.4 billion profit driven by AI growth, prompting Elon Musk to form committees to study a potential merger with Tesla, Inc.
Nasdaq futures rose Wednesday following a global rally in artificial intelligence stocks and a strong earnings report from Space Exploration Technologies Corp. The company reported its first profits as a public company, posting a $4.4 billion quarterly profit on $14.5 billion in revenue. This growth was primarily driven by its AI business, specifically the leasing of cloud computing to firms such as Anthropic.
Following the results, Elon Musk announced that special committees from the boards of Space Exploration Technologies Corp. and Tesla, Inc. have been formed to explore a potential merger. Musk noted that a deal is not imminent and that securing the required 50 percent shareholder approval at Tesla, Inc. would be a high hurdle.
While AI-related stocks like Micron and Intel saw premarket gains, other sectors faced volatility. Netflix shares fell more than 6% after the company lowered its ad sales guidance. Broader market sentiment remained cautious due to social unrest in France, which forced Carrefour to cut financial targets, and rising energy costs. Brent crude reached $110.21 per barrel amid ongoing conflict with Iran and attacks in the Strait of Hormuz. Additionally, Citadel CEO Kenneth C. Griffin warned that the market is almost certainly in an AI bubble, questioning the utility of current corporate spending levels.
