Super Intelligence generated $7.6bn as SpaceX shares rose after hours
SpaceX’s second-ever public earnings report showed $14.58bn in quarterly revenue, up 161% from a year earlier and above analysts’ projected $12.72bn. The company, which encompasses rockets, artificial intelligence and satellite communications, reported earnings per share of 35 cents and net income of $4.4bn.
SpaceX attributed the year-over-year growth to its Starlink and artificial-intelligence segments. Musk appeared alongside SpaceX president Gwynne Shotwell and chief financial officer Bret Johnsen at his Starlink factory in Texas to deliver the report, emphasizing the company’s growth, discussing plans for future rocket developments and highlighting its artificial-intelligence segment. SpaceX calls that segment Super Intelligence; the company said it generated $7.6bn in revenue and now outperforms the Connectivity business, which provides internet services.
SpaceX shares were down around 8% for the year when trading began Tuesday and rose 2% in after-hours trading immediately after the results were released.
The Guardian’s report included a photograph of a SpaceX test flight at Starbase, Texas, last month. The photograph was credited to Steve Nesius/Reuters.
On the earnings call, Musk said he supported combining SpaceX, an aerospace and artificial-intelligence company, with Tesla, his electric-vehicle company. He said both companies had formed special committees of independent directors at shareholders’ request to explore a potential merger, but no transaction terms had been agreed.
Musk said the special committees had been formed at shareholders’ request and consisted of independent directors. “Both SpaceX and Tesla have formed special committees to discuss this idea at the request of shareholders and these special committees are, uh, consist of independent directors,” Musk said. “Because I’m a conflicted party, I can’t actually be in the discussions of the special committees.” He said a combination would require approval from 50% of all Tesla shareholders.
Musk also said shareholder approvals and special committees at both companies were required. “I think some people out there assume that a SpaceX and Tesla merger is a certainty and I think that would be overstating it,” Musk said. “I do think there’s a lot of merit to combining the companies.” The Guardian said investors had been speculating about the proposal and described Tesla as the second-most valuable part of Musk’s technology empire.
The Guardian said SpaceX’s international role was under scrutiny after Ukrainian President Volodymyr Zelenskyy accused the company the previous week of restricting access to its military-grade Starlink internet service. The Guardian said the disruption in service to StarShield allegedly led to several failed Ukrainian combat missions and left Ukraine more vulnerable to Russian drone attacks. The report said the episode also highlighted how global internet infrastructure has come to rely on Musk’s products.
Musk denied responsibility for the disruption and said StarShield was controlled by the U.S. government, not SpaceX. The White House likewise denied hobbling StarShield. The Wall Street Journal reported moments before Tuesday’s earnings call that Musk personally ordered the throttling of StarShield, citing unnamed U.S. officials and people familiar with the matter. Musk was not questioned about those reports during the investor question-and-answer portion of the call.
The Guardian described Musk as the world’s richest person and reported $366m in political spending this election cycle, including support for Republican-aligned Super PACs and spending to influence key midterm races. Earlier in the month, Musk agreed to co-lead a Pentagon project on the future of warfare, returning to government work after his time as the de facto leader of the so-called “department of government efficiency” (Doge).
Musk recently pledged to give every child in the U.S. one SpaceX stock next year. Donald Trump said the giveaway would be facilitated through the president’s “Trump accounts” initiative, which creates savings plans for children. “Giving shares, which are stakes in the future economy, directly to the people is the way,” Musk posted on X, the social media company he owns.
The Guardian wrote, “The prospective share giveaway is a rare display of philanthropy from Musk.” The report said Musk has criticized traditional aid organizations and has taken credit for dismantling USAID by gutting the government agency, which The Guardian described as the world’s largest single provider of humanitarian aid.
The Guardian said technology leaders such as Musk faced increasing public pushback over their extraordinary accumulation of wealth and power in the U.S. It said the artificial-intelligence firms OpenAI and Anthropic both announced major investments in their grant-making and nonprofit arms during the year. Anthropic said earlier in the week that it planned to donate 5% of its shares to a newly created public benefit fund within the company.
Tesla was scheduled to reveal its latest earnings Wednesday, with Musk set to deliver the quarterly report. Tesla shares received a slight boost earlier in the week after the company unveiled the Tesla Roadster 2 electric sports car. Musk showcased the vehicle in a demonstration in which pressurized air tanks briefly lifted it from the ground and enabled aerial stunts.