SpaceX Just Crushed Wall Street's Q3 Targets -- but a Potential Tesla Merger Is Even Bigger News

SpaceX (SPCX) posted Q3 adjusted EPS of $0.45 on $14.58B in revenue, crushing consensus estimates of $0.13 EPS and $12.72B. That is a 246% earnings beat and a 15% revenue beat. Revenue rose 161% year over year, with strength across all segments.

The bigger market mover came from CEO Elon Musk, who disclosed that special committees are exploring a potential merger with TSLA. Musk called the combination a good idea. Shareholder approval would be required, and it is not guaranteed.

Interpretation: the earnings beat gives SPCX a stronger valuation argument if merger talks advance, since the company is negotiating from a position of demonstrated growth. For TSLA holders, the open question is how a deal would be structured. Nothing in the disclosure specifies terms, an exchange ratio, or a timeline, so any pricing of a deal today is speculation.