SpaceX shares climbed in premarket trading after the company reported strong quarterly earnings. The results beat analyst expectations and lifted broader Nasdaq futures.
The company also confirmed it has opened preliminary talks to merge with Tesla. A combined firm would span rocket launches, satellite networks, and electric vehicles.
SpaceX reported rising revenue from its launch services and Starlink satellite internet business. Cost controls helped margins improve from the prior quarter.
The merger discussions remain at an early stage. No terms have been disclosed, and both companies cautioned that no deal is guaranteed.
Investors responded to the potential combination with cautious optimism. Tesla shares moved modestly as traders weighed the strategic fit of the two firms.
Nasdaq futures gained ground following the earnings release. The rally extended to other technology names tied to space and electric vehicle supply chains.
Analysts note that any merger would face regulatory review. Antitrust scrutiny and national security concerns could shape the timeline for approval.
SpaceX has not set a date for further talks with Tesla. The company said it will share more details when discussions reach a formal stage.
