Shares of SpaceX and Tesla increased significantly on Wednesday following a strong financial report from SpaceX and speculation about a potential merger between the two companies. SpaceX's stock climbed nearly 8% after the company announced third-quarter revenue of $14.6 billion, representing a 161% rise compared to the same period last year. Tesla shares also advanced, gaining 3.4%.

The surge in SpaceX’s revenue was driven in large part by its artificial intelligence division, which contributed approximately $7.6 billion. This marks a considerable shift in the company’s business model, which had previously relied heavily on income from its Starlink satellite internet service.

Market analysts have noted the growing interest in closer alignment between SpaceX and Tesla. Dan Ives, a partner at Yorkville Ives & Co., indicated there is an 80% to 90% probability that the two firms could merge by the end of 2027. While no formal plans have been announced, the potential consolidation is being closely watched by investors due to the complementary nature of the companies’ technological expertise and innovation-driven sectors.

Both companies, led by Elon Musk, continue to expand in their respective fields—SpaceX in aerospace and satellite technology, and Tesla in electric vehicles and energy solutions. The recent financial performance underscores their ongoing growth and positions them prominently within the technology and transportation industries.