SpaceX Profit Beats Estimates on Big Jump in AI Business Revenue

SpaceX exceeded estimates for quarterly revenue and profit, driven by substantial growth in its artificial intelligence and satellite internet businesses.

Elon Musk’s satellite, rocket and artificial intelligence conglomerate posted $4.4 billion in net income for the quarter ended in September, far better than analysts’ average projection of $1.88 billion. Revenue increased 161% from a year ago and also beat expectations.

SpaceX shares rose as much as 3.2% as of 4:15 p.m. in New York, after the close of regular trading. The stock has been volatile since the company’s record-setting initial public offering in June at $135 a share and closed Tuesday at $147.79.

SpaceX’s $2 trillion market value — which rivals a number of megacap firms and tops Musk’s Tesla Inc. — has been fueled by the billionaire entrepreneur’s promises to deliver futuristic technology across an expanding business empire.

Musk’s growth plans include putting data centers in space and delivering the rapidly reusable Starship rocket — endeavors that come with high costs, significant risks and that will likely take years to materialize. Still, Wall Street remains overwhelmingly bullish on the company given Musk’s track record of upending mature industries.