Elon Musk Teases Tesla Merger and $1 Trillion Milestone for SpaceX

During SpaceX's third-quarter webcast, Elon Musk said SpaceX could reach an annual recurring revenue run rate of $500 billion to $1 trillion by the end of 2027. Annual recurring revenue measures the yearly value of recurring income, often calculated by annualizing a current period. Musk also said he saw merit in a combination with Tesla, noting that special committees at both companies have begun exploring a deal; he is not participating in the talks, and any agreement would need approval from at least 50% of Tesla shareholders. SpaceX's third-quarter revenue was $14.6 billion, 161% higher than a year earlier, while net income was $4.4 billion after a $1.1 billion loss in the prior-year period. No deal terms are in place.