SpaceX Stock Surges on Strong Third-Quarter Earnings and Potential Tesla Merger Study
SpaceX shares experienced their largest single-day jump since the company’s public debut in June, driven by third-quarter financial results that exceeded Wall Street estimates and a surprise disclosure regarding a potential merger investigation.
The aerospace and defense company gapped higher in early trading on Wednesday, putting the stock on pace for its best performance in two months. The strong showing was fueled by robust financial reports indicating that the company’s artificial intelligence business now accounts for nearly half of total sales.
Adding to market momentum, Chief Executive Officer Elon Musk announced late Tuesday that both SpaceX and Tesla have established committees to study a potential merger between the two companies. Tesla’s financial reporting is scheduled for release following Wednesday’s market close.
The broader space sector also climbed during Wednesday’s trading session, recovering from a difficult period. Through Tuesday’s close, the typical newer space stock had declined roughly 26% in October, while SpaceX experienced a much milder pullback of just 2%. Meanwhile, legacy defense names such as Lockheed Martin and Northrop Grumman largely posted gains, though analytics indicate SpaceX has largely charted its own course distinct from its newer industry peers since going public.
Every newer space stock moved higher in early Wednesday trading, led by Intuitive Machines and Firefly Aerospace, with Rocket Lab and AST SpaceMobile trailing the group.
Despite the positive momentum, market analysts flagged potential concerns regarding corporate spending. SpaceX announced plans to expend between $35 billion and $40 billion during the fourth quarter. Chris Versace of Tematica Research noted in a Wednesday report that the projected spending level suggests a new and higher level of capital expenditures than the market anticipated, though he emphasized that the spending is supported by a substantial $63 billion backlog.
Trading ranges and technical floors have also drawn attention from market participants. SpaceX’s initial public offering trade occurred at $150, a level bulls treated as a crucial line in the sand. Throughout August and September, support established itself near the $140 mark, serving as a floor where buyers consistently stepped in during pullbacks.
Recent trading activity showed October’s pullback stalling well above that floor, with closes holding in the $146 to $148 range last week. Wednesday’s opening gap successfully carried the stock past the $160 threshold in a single move. On the upside, overhead resistance remains near $172, a level where closes stalled in late June and early October. Beyond that resistance, June highs around $210 represent the next potential ceiling.
Market watchers are closely monitoring whether the stock can maintain its gap into the closing bell, particularly as it faces an upcoming test with the release of up to 1.3 billion shares on Thursday. The event marks the company’s largest share unlock to date, though past unlocks have exerted minimal downward pressure on the stock, with the largest previous release in August coinciding with a market low. Sustaining a price above $150 through Thursday’s unlock would signal that buyers are comfortably absorbing the new market supply.
