SPCX Gains After Hours Ahead Of Upcoming Starship Test Flight— Tesla Books $1B SpaceX Gain

The $1-billion unrealized gain on SpaceX holdings provided a notable boost to Tesla’s reported net income for the second quarter.

• During Tesla’s Q2 2026 earnings call, CEO Elon Musk emphasized the growing strategic relationship between Tesla and SpaceX.
• The most significant joint initiative mentioned was TerraFab, a planned large-scale semiconductor facility.
• Tesla is also integrating SpaceX’s Starlink satellite internet connectivity directly into the Cybercab.

Tesla reported a $1-billion mark-to-market gain on its SpaceX holdings in the second quarter, the company's CFO said on Wednesday, as rumors of a potential merger between the two Elon Musk-owned companies persist.

“Net income was positively impacted by a mark-to-market gain of 1 billion on our SpaceX holdings, which was offset by losses on FX of approximately 300 million and on Bitcoin of about 100 million,” CFO Vaibhav Taneja said on Tesla’s second-quarter earnings call. A mark-to-market gain is an increase in the value of an asset that a company owns, based on its current market price.

SPCX shares closed down 7% on Wednesday but edged up 1% after-hours. SpaceX is now gearing up for the next test flight of its Starship launch vehicle, targeted for July 23.

Tesla’s SpaceX Stake

Tesla acquired its stake in SpaceX through the conversion of an earlier investment rather than a direct purchase. In January 2026, Tesla invested $2 billion in xAI by purchasing convertible preferred stock. The company converted that investment into around 18.99 million shares of SpaceX Class A common stock, representing less than 1% of SpaceX, following the acquisition of xAI by SpaceX.

The $1-billion unrealized gain on SpaceX holdings provided a notable boost to Tesla’s reported net income for the quarter. However, Tesla still recorded negative free cash flow of $1.1 billion, primarily due to a sharp increase in capital expenditures as the company ramps up investments in autonomy, robotics, and AI infrastructure.

Strengthened Ties With SpaceX

During Tesla’s Q2 2026 earnings call, CEO Elon Musk emphasized the growing strategic relationship between Tesla and SpaceX. Musk highlighted increasing operational overlap between the two companies, particularly around AI infrastructure and compute needs.

The most significant joint initiative mentioned was TerraFab, a planned large-scale semiconductor facility. Musk described it as a critical project required to scale production of Tesla’s humanoid robot Optimus, adding that Tesla would otherwise face constraints due to insufficient AI chip supply.

Starlink To Power Cybercab Connectivity

Tesla is also integrating SpaceX’s Starlink satellite internet connectivity directly into the Cybercab, the company’s dedicated robotaxi product. Musk explained that reliable, high-bandwidth connectivity is essential for robotaxi operations, as cellular coverage remains inconsistent in many areas. Starlink will help ensure continuous operation and enable premium in-car experiences, such as 4K video streaming, for passengers, once the vehicles are in unsupervised service, the company said.

Tesla, however, refused to address the rumors of a potential Tesla-SpaceX merger on Wednesday’s earnings call, terming it not the right place for the same.

How Did TSLA, SPCX Retail Traders React?

On Stocktwits, retail sentiment around TSLA stock fell from 'bullish' to 'neutral' over the past 24 hours, while message volume rose from 'normal' to 'high' levels.

Meanwhile, sentiment around SPCX stayed at ‘bearish’ levels, accompanied by ‘normal’ levels of retail chatter.

While TSLA stock has slipped 17% year-to-date, SPCX has dropped 28% since its listing on Nasdaq in June. 

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