SpaceX came out with their Q3 CY26 results yesterday. Here are the salient points of the Earnings filings and the investor call with Elon Musk :
- Delivered revenue of $14.6 bn with a growth of 161% with Super Intelligence (AI) revenues leading the charge followed by connectivity.
- Achieved a net income of $4.4 bn and EBITDA of $ 8.8 bn
- The AI division currently has a nameplate capacity of 1.7 Gw slated to close the year with 3 GW+ . Musk talks about assured incremental capacity of 10GW with 20GW as a realistic possibility !!! (For perspective , Indian capacity is slated to be 7-8 GW by 2030
). - SpaceX today has broadly 3 divisions : Space , Connectivity and Super Intelligence .
SPACE DIVISION :
Space Division conducted 113 launches YTD and 1517 tonnes mass to orbit .
For flight 15 (next one) they target to catch both booster and ship. Elon says that is going to be an enormous feat if that happens. He says it’s an important tech milestone and people don’t realize the significance of this. They are targeting 100% reusability so that you can land a rocket and then launch it again like an airplane
CONNECTIVITY DIVISION
Starlink Consumer Subscribers # : 13.6 M
Total Satellites in Orbit : 11.1 k
Starlink Consumer ARPU : $69
This is what Elon had to say about the demand going forward:
SUPER INTELLIGENCE DIVISION
- SI division delivered the highest revenue of $7.5 bn .
- The SI division caters to internal requirement (Cursor,Grok, Grok bot etc) and sells compute capacity to hyperscalers and other smaller players .
- Elon said their internal aim is to split the revenues 50:50 internal v/s external from the SI division.
Revenue split
SI contributes the highest in terms of revenue and Ebitda and Connectivity contributes to the highest Net Income.
Concall Notes
- Elon says that the constraint in deploying massive compute clusters is more so due to power and cooling than availability of chips. Since Space X has a team that has expertise in sending rockets to space , they can deploy power and cooling faster than anyone else in the world.
- They have been super focussed to bring Tera Fab super compute clusters online. They have been bringing roughly 2,00,000 GB 300 per month till the year end and then Vera Rubin from next year.
- They are casting the blades and vanes in-house for the turbines that power their DCs. SpaceX foundry in Bastrop Texas announced. Elon sees casting capabilities as the real bottle neck.
- SpaceX is venturing into Chip fabrication through TERAFAB and has placed equipment orders to the likes of ASML. They expect to start chip production by Q3 or Q4 of 2028 and true to form expects this to deliver terawatt of AI chips per year !!
Posting the transcript directly on the AI compute demand : (Required on a day like this when broader market and anything remotely linked to AI /DC theme getting a solid pounding).
The sheer size of the numbers and the ambition of the man is highly contagious. And coming from him despite several of the projects are Scifi in nature we would have to believe is going to happen . There were talks of a merger between Tesla and Space X which are in the discussion stage and may or may not happen. All 3 divisions are venturing into uncharted territory and probably will be trillion dollar businesses in itself.
Disc: Not Invested. Posted for academic interest and insights into the direction Elon and SpaceX are moving.