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Elon Musk Favors SpaceX-Tesla Merger, As Company Beats Revenue Expectations: Q3 2026 Earnings Call
October 20, 2026
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SpaceX reported $14.58 billion in Q3 2026 revenue, a 161% year-over-year increase that significantly beat Wall Street estimates of approximately $12.7 billion. The company achieved its first-ever profitable quarter with $4.4 billion in net income and $0.35 in adjusted EPS, driven primarily by explosive growth in its Artificial Intelligence segment, which saw revenue surge 830% to $7.6 billion.

During the livestreamed Q3 2026 earnings call, CEO Elon Musk, President Gwynne Shotwell and CFO Bret Johnsen discussed Starlink mobile, Starship, AI data center buildout and possible SpaceX-Tesla merger.

Musk said that forming a merger with Tesla would be a "good idea" and confirmed that special committees of independent directors have been established at both companies to discuss the tie-up. He cautioned that the merger is not a certainty and noted the high hurdle of requiring a 50% vote of all Tesla shares.

"I do think there’s a lot of merit to combining the companies as we are pretty much in the superintelligence singularity, and there’s a lot to be gained from cooperating,” Musk said, referring to the development of software, chips and more.

“Do I think it would be a good idea? Yes,” Musk said. “But at the end of the day, the shareholders have to be supportive of this.”

Musk said that on the Tesla side, “we will need a 50% vote of all shares -- not just those who vote -- but of all shareholders, and that’s quite a high hurdle.”

The Connectivity segment reported $5.2 billion in revenue with 13.6 million consumer subscribers. Starlink Mobile surpassed 22 million monthly users, with new carrier partnerships activated in countries such as Uganda, the Democratic Republic of Congo, and Costa Rica.

Musk highlighted relentless demand from hyperscalers for SpaceX data centers, citing investments in the Colossus infrastructure and AI offerings like Grok. The AI segment's rapid growth is attributed to cloud services, the acquisition of Cursor, and increased enterprise adoption of Grok. He also said on that SpaceX aims to reach “volume production” of AI chips, now in development with partners Tesla and Intel, during the third quarter of 2028 at the Terafab factory that’s planned in Texas.

SpaceX successfully launched its first revenue-generating Starship mission, deploying 26 Starlink V3 satellites. Musk emphasized the goal of fully recovering the orbital launch vehicle and targeting a crucial orbital refueling demonstration for early 2027.

Johnsen forecasted Q1 2027 revenue between $33 billion and $37 billion, while Musk projected annual recurring revenue could reach $500 billion to $1 trillion by the end of 2027. Capital expenditures came in at $19.59 billion, slightly above estimates but lower than anticipated given the scale of AI investments.

This was SpaceX’s second-ever public earnings report following its June 2026 IPO. The company’s valuation sits at approximately $2 trillion, while Tesla is valued at roughly $1.5 trillion. The shift to profitability marks a significant transition for the spaceflight giant, with its AI and satellite communications units now outpacing its traditional launch services in revenue contribution.

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Jensen Huang Apologizes To Nvidia Staff Over Extramarital Affair With Chinese Spy

Nvidia CEO Jensen Huang admitted to an extramarital affair with Alice Huang, a suspected Chinese spy, in a letter to staff on Sunday, prompting the company’s board to launch an independent investigation into potential national security breaches.

U.S. intelligence agencies determined that Alice Huang, an executive at a Singapore-based data center company and Nvidia customer, Megaspeed, was recruited by China’s Ministry of State Security (MSS). She allegedly engaged in a "honeypot" operation to influence Jensen Huang, who has advocated for looser AI chip export restrictions to China, and to help restricted Chinese firms acquire advanced Nvidia GPUs.

Megaspeed had reportedly purchased billions of dollars in Nvidia hardware and faced scrutiny regarding potential export control violations and whether advanced chips were being channeled into China.

In a memo titled "A message to our company," Huang stated, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did." He accepted full responsibility, apologized to his family and colleagues, and expressed his commitment to protecting Nvidia and U.S. national security.

Nvidia’s Board of Directors initiated an independent investigation, assisted by outside counsel, to determine if Huang was the target of a foreign intelligence effort and if any secrets were compromised. Despite the probe, the board expressed full confidence in his leadership, noting that routine customer interactions do not inherently involve sensitive information.

The State Department and Secretary of State Marco Rubio had previously warned top Trump officials about the relationship, leading to the public disclosure by The New York Times in late October.

The Chinese government dismissed the spying allegations as "groundless speculation" and "smears."

The U.S. House Select Committee on China requested that Huang appear before Congress to answer questions regarding potential security protocols, foreign adversary espionage risks, and U.S. export control compliance.

U.S. markets reacted with a slide in Nvidia’s share price.

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November 08, 2026
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Iron Gate: CENTCOM Announces Task Force To Disrupt Iran's Overland Supply Chain, As 'Minor' US Airstrikes Target Queshm Island

U.S. Central Command (CENTCOM) over the weekend, announced the establishment of Task Force Iron Gate, a coordination unit directed by Admiral Brad Cooper to disrupt Iran’s overland supply chains. The task force which will consist of about 20 civilian and military personnel is based in Tampa, Florida; and will work with other U.S. government agencies to monitor, detect, and prevent the movement of advanced weapons systems, dual-use technologies, sanctioned materials, and illegal revenue streams across Iran’s land borders and the Caspian Sea.

"The establishment of Task Force Iron Gate reinforces the success of our ironclad blockade against Iran at sea," said Cooper. "Strengthening CENTCOM's collaboration with U.S. interagency partners will further constrain Iran's ability to finance terrorism, rebuild weapons factories, and replenish their military."

This initiative expands U.S. pressure on Iran by targeting land-based transit routes, complementing maritime enforcement measures that CENTCOM claims have prevented Iran from exporting more than $25 billion in crude oil in recent months amid stalled US-Iran peace negotiaitions to formally end the war which started on February 28 with US-Israeli bombing of Iranian targets.

President Donald Trump confirmed the operational status of the unit in a Sunday post on Truth Social, writing that Task Force Iron Gate is "in full force and effect" alongside a broader naval blockade.

The formation of Task Force Iron Gate serves as an interagency coordination effort rather than a direct combat deployment, aiming to constrain Iran's ability to finance terrorism and rebuild military capabilities.

This move follows an eight-month naval blockade of Iranian ports along the Arabian Gulf and Gulf of Oman, with the new task force specifically focusing on northern transit corridors that may be used to bypass maritime restrictions.

Trump confirmed on Friday that the U.S. carried out "minor" strikes on an Iranian air defense system on Qeshm Island, a crucial area for oil shipments. "....We do minor strikes..., but they built a little bit of an anti-aircraft device, and we knocked it out in about 15 minutes, maybe five," Trump told reportetrs Friday.

 

 

Trump Agrees With Vance Over GOP Midterm Election Loss: 'There is Great Dislike For Israel'

The U.S. airstrikes on Queshm Island occur as Vice President JD Vance is reportedly engaged in intensive behind-the-scenes diplomacy with Pakistani and Qatari mediators to get Tehran to agree to direct peace talks with Washinghton. The vice president and Trump agreed that their Republican Party's recent sweeping loss in Tuesday's midterm elections were the result of voters anger at the war, high gas prices and US-israeli relations.

"They didn't like the war; they didn't like the fact that gasoline went up....; and there's a great dislike incredibly for Israel," Trump told CBS.

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USSF-432: SpaceX Falcon 9 Launches Classified Payload For The US Space Force

SpaceX Falcon 9 launched the classified USSF-432 mission for the U.S. Space Force from Vandenberg Space Force Base at 0048 UTC in California, marking the 119th Falcon 9 launch of the year and the 14th national-security flight.

The rocket followed a south-easterly trajectory from Space Launch Complex 4E (SLC-4E). The first-stage booster, B1095, completed its eighth flight after previously supporting the GPS III-8 mission and six Starlink launches. Following stage separation, B1095 successfully landed on the autonomous droneship 'Of Course I Still Love You' in the Pacific Ocean. The Falcon 9's upper stage, meanwhile, continued carrying its mystery payload skyward.

The mission, also designated R-4 in public documents, is part of a series of national security launches. While the U.S. Space Force and SpaceX have not officially disclosed payload specifics, analysts suspect the mission carries 23 satellites based on SpaceX’s Starshield platform—a government-hardened variant of Starlink. These satellites are believed to support the Space Force’s Space Based Sensing and Targeting (SBST) program, likely deploying into Low Earth Orbit (LEO).

Starlink is SpaceX's LEO broadband megaconstellation, which consists of more than 11,000 active satellites. Starshield is a similar system designed to provide services to the U.S. military and its allies. Starshield satellites are believed to be based heavily on the Starlink satellite bus.

The live webcast of USSF-432 was cut short approximately 10 minutes into the flight, shortly after the booster landing, consistent with standard protocols for classified missions. This launch was the 74th from California in 2026 and the 125th total SpaceX launch of the year.

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