Considering merging Tesla and SpaceX

The world's richest man said at the press conference when SpaceX presented its quarterly results that they had assembled committees to investigate the possibility of merging the two giant companies. A merger would be the biggest merger ever. – I think there are many advantages to merging the companies. There is a lot to gain from cooperating to develop software for superintelligence, said Musk according to Bloomberg. Read also "We strongly react to you insinuating that we are immoral" He emphasized that it was not certain. – I think some take it for granted that SpaceX and Tesla will merge, but I believe it is going too far to say it is certain. Tesla currently has a market value of 1.480 billion dollars. SpaceX is worth 2.000 billion dollars at present. Missed expectations SpaceX delivered a revenue of 14.58 billion dollars in the third quarter, according to the company's quarterly report on Tuesday evening. Revenue increased by a whole 161 percent from the same quarter last year, when it was 5.58 billion dollars. – We delivered a strong quarter, writes CFO Bret Johnsen in the quarterly report. Read also Same fund – three times as expensive Analysts expected a revenue of 12.87 billion dollars, according to Bloomberg. The company delivered a profit of 4.4 billion dollars, clearly above the analysts' estimate of 1.88 billion dollars. In the second quarter, there was a deficit of 541 million dollars. Read also Sees joker in DNB report: – Can surprise positively Earnings per share ended at 0.35 dollars, compared to the expected 0.15 dollars per share. Around 10:50 PM, the stock jumped 4.28 percent in after-hours trading on Wall Street while Elon Musk was making his presentation. – Like the Yankees in the little league. Musk believes that SpaceX has a significant competitive advantage in the development of AI infrastructure. He points out that the company, according to him, is responsible for almost 90 percent of all mass launched into orbit around the Earth, and that the same team is now working to build data centers and other AI infrastructure. – It is a bit like the New York Yankees playing in little league. It is not fair, says Musk. He claims that SpaceX can build out power and cooling infrastructure much faster than its competitors, and that the company can eventually be faster than all competitors combined. Billion investments in AI One of the big questions before the earnings report has been how much SpaceX is spending on its extensive investment in artificial intelligence. Analysts expected the company to invest 19.6 billion dollars in the third quarter. The actual capital investments were planned at 19.59 billion dollars. Of this, around 16.44 billion dollars is related to the AI business. In comparison, investments were expected to be around 1.6 billion dollars in the business for satellite-based internet and 1.52 billion dollars in space travel. The large investments have also raised questions about how the company will finance further development. Morgan Stanley points out that the need for further financing is still a major concern among investors. The brokerage firm also believes that the further development of the stock depends more on what role SpaceX can get in AI and robotics than on the quarterly result itself. Starlink grows The satellite business Starlink is also continuing to grow. SpaceX's business in satellite communications generated 5.25 billion dollars in the third quarter, up 69 percent from the same period last year. Analysts expected a revenue of 4.86 billion dollars. By the end of September, Starlink had 13.6 million customer subscriptions, up from 12 million at the end of the second quarter. The company also reports that more than 3,800 planes are now equipped with Starlink. Earlier in October, SpaceX entered into an agreement to purchase frequency rights in the US. The acquisition will contribute to the company's plans to build its own mobile network. Questions about Tesla merger The quarterly report is the second side of SpaceX went public on the stock exchange in June. Before the earnings report, there has also been increasing interest in the possibility of a merger between SpaceX and Elon Musk's electric vehicle manufacturer Tesla.