Why Is SpaceX Stock Surging in Pre-Market Trading?

Space Exploration Technologies Corporation (NASDAQ:SPCX), commonly known as SpaceX, reportedly rose nearly 10% in pre-market trading on Wednesday following third-quarter financial results that exceeded analyst expectations and reports of discussions about a possible merger with Tesla.

According to the supplied report, the company recorded substantial growth in its artificial intelligence and satellite connectivity businesses, alongside its first quarterly profit since becoming publicly traded.

The reported share price increase also coincided with higher US equity futures and revised analyst price targets.

How Did SpaceX Perform in the Third Quarter?

SpaceX reportedly generated third-quarter 2026 revenue of $14.58 billion, an increase of 161% from the corresponding period a year earlier.

The reported figure exceeded the analyst consensus estimate of $12.74 billion.

Earnings per share reached $0.35, compared with market expectations of $0.12, according to the supplied figures.

The results were described as the company’s first quarterly profit since its stock market debut.

The revenue increase was attributed primarily to growth in artificial intelligence infrastructure and satellite connectivity services.

Why Has SpaceX’s Artificial Intelligence Business Become Important?

SpaceX’s Super Intelligence division reportedly generated $7.6 billion in third-quarter revenue, representing an increase of 830% year on year.

According to the report, the division’s revenue exceeded that of Starlink for the first time.

The figures suggest that artificial intelligence infrastructure has become an increasingly important component of the company’s reported business activities.

However, the financial contribution of the division will depend on operating expenses, infrastructure investment requirements and the sustainability of customer demand.

How Did Starlink Perform During the Quarter?

The Starlink satellite connectivity business reportedly recorded revenue of $5.2 billion, an increase of 69% compared with the previous year.

The number of subscribers reached 13.6 million, according to the reported figures.

The growth reflects the continued expansion of satellite internet services, although Starlink’s quarterly revenue was reportedly below that of the Super Intelligence division.

The performance of both businesses remains relevant to assessments of SpaceX’s revenue composition and future operating profitability.

Could SpaceX Merge With Tesla?

The supplied report states that SpaceX Chief Executive Elon Musk confirmed during an earnings call that SpaceX and Tesla had established independent special committees to evaluate a potential merger.

Musk was reportedly excluded from the committees’ deliberations because of his leadership roles at both companies.

He described the proposed combination as “a good idea” and discussed potential opportunities involving artificial intelligence, semiconductor manufacturing and space infrastructure.

The report also attributed to Musk a projection that a combined company could generate annual recurring AI revenue of between $100 billion and $1 trillion by the end of 2027.

Such figures would represent a hypothetical scenario rather than confirmed revenue guidance.

The information provided does not establish that a definitive merger agreement has been reached. Any proposed transaction would require further evaluation and potentially regulatory and shareholder approvals.

What Are Wall Street Analysts Saying About SpaceX?

According to the supplied market report, Citigroup increased its price target for SpaceX shares from $200 to $240 on Wednesday.

Macquarie and Cantor Fitzgerald had reportedly maintained positive recommendations the previous day, with respective price targets of $250 and $246.

The reported average 12-month analyst price target was approximately $225, with the broader consensus described as Buy.

These targets represent analysts’ assessments of the company’s potential valuation and should not be interpreted as guaranteed future share prices.

Is the Broader Stock Market Contributing to the Rally?

The reported increase in SpaceX shares occurred alongside gains in US stock index futures.

S&P 500 futures advanced approximately 0.25%, while Nasdaq-100 futures rose 0.75%.

During the preceding regular trading session, the Dow Jones Industrial Average gained around 1%, the S&P 500 increased 0.3%, and the Nasdaq finished marginally lower.

Tesla shares also reportedly advanced in after-hours trading on Tuesday following the disclosure of potential merger discussions.

The scale of SpaceX’s reported pre-market increase exceeded the broader market movements, suggesting that the company-specific announcements were an important factor.

What Should SpaceX Investors Watch Next?

Investors will be assessing whether the reported growth in SpaceX’s artificial intelligence activities can be sustained and how the expansion affects profitability and capital expenditure.

Starlink subscriber growth, revenue trends and the financial performance of the company’s other operations will also remain relevant.

Any further announcements regarding a possible Tesla merger could provide additional information about the proposed transaction’s structure, financing and potential implications for shareholders.

According to the supplied report, SpaceX shares were trading within a 52-week range of $104.83 to $225.64, with the latest pre-market increase following the reported earnings figures and merger discussions.

The company’s listing details, financial results and merger-related statements have not been independently verified for this rewrite.

SpaceX stock price