Elon Musk, CEO of SpaceX, mentioned the possibility of a merger with Tesla and announced plans to expand artificial intelligence (AI) computing infrastructure and produce semiconductors in-house.

During the Q&A session of SpaceX's third-quarter 2026 earnings announcement held on the 20th (local time), Musk answered questions about the possibility of a merger between the two companies, AI investment, and the expansion of the Starlink network.

◆ Possibility of Merger with Tesla... Special Committee of Outside Directors to Review

When Deutsche Bank analyst Edison Yu asked about the possibility of a merger with Tesla, Musk explained that the two companies had established a special committee composed of outside directors at shareholders' request. He said he would not participate in the committee's discussions due to conflicts of interest.

Musk said it would be an exaggeration to regard the merger as a done deal, noting that no agreement on deal terms has been reached yet. However, he positively assessed the potential for cooperation between the two companies in areas such as AI software, semiconductor design, robotics, and space-based systems.

◆ In-House Terafab Semiconductor Production... Mass Production Targeted for Q3 2028

He also disclosed a plan for in-house semiconductor production. Musk said that through the Terafab project, he aims to bring test chips online in May or June 2027 and begin full mass production in the third quarter of 2028. However, he explained that the production schedule is an aggressive internal target and there is uncertainty as to whether it will actually be achieved.

◆ AI Computing to Reach 13GW by 2027... Power and Cooling Up to 23GW

SpaceX plans to expand its AI computing infrastructure to approximately 13 gigawatts (GW) by 2027. Musk expressed confidence that the company will secure about 3GW within the next few months and can add 10GW more during 2027. He also presented a plan to expand power and cooling infrastructure to as much as 23GW.

SpaceX is applying the casting technology it has used for rocket engine manufacturing to the production of gas turbine parts and is also reviewing various energy sources, including solar and wind power.

◆ Funding for Large-Scale Investment... Policy to Maintain Investment-Grade Credit Rating

Regarding funding for large-scale investments, CFO Brett Johnson said the company will maintain its investment-grade credit rating while utilizing debt markets and various financing instruments.

The company aims to allocate AI computing resources equally between internal use and external leasing. Musk explained that the actual ratio may vary depending on market conditions and that he prefers short-term leases over long-term contracts.

◆ Starlink Envisioned to Generate Tens of Billions of Dollars in Annual Revenue... Starship's First Launch from Louisiana in 2028

Regarding the Starlink communications business, Musk presented a vision that it could generate tens of billions of dollars in annual revenue over the long term. However, he said the specific path for revenue growth would be explained in a separate announcement.

COO Gwynne Shotwell predicted that once Starlink V3 satellites scale up to the hundreds, users will notice improvements in throughput and latency rather than call speed from mid-2027. Plans to expand Starship launch facilities were also mentioned. Musk said he is targeting the first launch from the Louisiana launch site in 2028 and expects large-scale launches to be possible in 2029.

◆ Plans vs. Confirmed Results... Distinction Needed

The merger discussions, semiconductor production, AI infrastructure expansion, and Starlink business growth presented in this Q&A are each at the negotiation or planning stage. In particular, future production schedules, computing capacity, and revenue targets are management plans and should be distinguished from confirmed results.

[This article is provided for informational purposes as investment reference material and does not recommend the purchase or sale of any specific stock. Figures may change depending on market conditions. Investment decisions and the responsibility for them rest with the investor. AI provided partial assistance.]