SpaceX Shares Rise 8% After First Post-IPO Quarterly Profit

SpaceX shares rose about 8% Wednesday after its first quarterly profit since its June IPO, as CEO Elon Musk said committees at SpaceX and Tesla were weighing a possible merger.

SpaceX reported $4.404 billion in net income, or 35 cents per diluted share, on $14.575 billion in revenue for the quarter ended Sept. 30. Revenue increased 161% year over year. Net income followed losses of $541 million in the quarter ended June 30 and $1.054 billion in the corresponding quarter a year earlier.

The profit included $1.025 billion in other income, $873 million in interest income and a $390 million income-tax benefit. Operating income was $2.791 billion.

On Tuesday’s earnings call, Musk said both companies formed independent-director committees after shareholders asked them to examine a possible merger. He said he was excluded from the discussions because of a conflict and that the committees had not agreed on terms. “I think that would be overstating it,” Musk said of calling a merger certain.

Musk said a deal would require approval from holders of at least 50% of all Tesla shares outstanding. SpaceX began trading on Nasdaq on June 12.