As SpaceX released its second-ever public earnings report Tuesday, Elon Musk declared his support for combining the aerospace and AI company with his electric vehicle company, Tesla. He said both companies had created special committees to explore a potential merger, but have not reached any agreement on terms of a transaction. He stated that it would require the approval of 50% of all Tesla shareholders.
SpaceX company, which encompasses rockets, artificial intelligence and satellite communications, reported a 161% growth in revenue year over year, driven by its Starlink and AI segments. The company declared $14.58bn in revenue against analysts’ projected $12.72bn. SpaceX reported earnings per share of 35 cents and a net income of $4.4bn.
The company’s stock, which started the day down around 8% for the year, shot up 2% in after hours trading immediately after the results. Musk appeared alongside SpaceX president Gwynne Shotwell and CFO Bret Johnsen at his Starlink factory in Texas to deliver the earnings report, touting the company’s growth and plans for future rocket developments. Musk also highlighted its artificial intelligence segment, which the company refers to as Super Intelligence, that drew $7.6bn in revenue and now outperforms its Connectivity business, which provides internet services.
Musk’s company once again found itself in the spotlight in recent weeks as investors have speculated about the potential merger with Tesla, the second-most valuable part of the tech mogul’s empire. Musk has also been at the center of geopolitical tensions after Volodymyr Zelenskyy, Ukraine’s president, last week accused SpaceX of restricting access to its military-grade Starlink internet service. The disruption in service to StarShield allegedly led to several failed Ukrainian combat missions and left the country more vulnerable to Russian drone attacks, as well as highlighted how global internet infrastructure has come to rely on Musk’s products.
Musk denied responsibility for the disruption, stating that StarShield was controlled by the US government, not SpaceX. The White House has likewise denied hobbling StarShield. Moments before the SpaceX earnings call on Tuesday, the Wall Street Journal reported that Musk personally ordered the throttling of StarShield, citing unnamed US officials and people familiar with the matter.
Musk faced no questions about the reports on the investor Q&A portion of SpaceX’s earnings call. While SpaceX’s role in international affairs faces scrutiny, Musk has taken on a resurgent role in US domestic politics. The world’s richest person has contributed $366m in political spending this election cycle, backing Republican-aligned Super Pacs and pouring money into influencing key midterm races.
Extract — continue reading at the source.
