SpaceX disclosed its second public earnings report on Tuesday, with Elon Musk confirming that both SpaceX and Tesla have established special committees to examine a possible merger. Musk, who leads both companies, said the committees were formed at the request of shareholders and consist of independent directors. He emphasized that he cannot participate directly in the discussions due to a conflict of interest.

The proposal has not yet resulted in any agreement, and Musk cautioned that it would require approval from at least 50% of Tesla shareholders. He noted that while the merger could offer strategic advantages, the process would involve navigating complex regulatory and logistical hurdles.

SpaceX reported revenue of $14.58bn, exceeding analysts' expectations of $12.72bn. The company posted earnings per share of 35 cents and net income of $4.4bn, reflecting a 161% year-over-year increase. Growth was driven primarily by its Starlink satellite internet division and artificial intelligence initiatives, which generated $7.6bn in revenue. The company's stock rose 2% in after-hours trading following the release, after opening the day down 8% for the year.

Musk presented the financial results alongside SpaceX president Gwynne Shotwell and CFO Bret Johnsen at the company's Starlink manufacturing facility in Texas. He highlighted progress on rocket development and the company's expanding role in space-based communications and AI.

The earnings call comes amid renewed scrutiny of SpaceX's involvement in international affairs. Earlier, Ukrainian President Volodymyr Zelenskyy accused SpaceX of limiting access to its Starlink military-grade service, alleging that the restriction contributed to failed combat operations and increased vulnerability to Russian drone attacks. SpaceX and the White House have both denied claims that the company directly controlled the service shutdown, stating that Starshield operations are managed by the U.S. government.

Prior to the earnings release, the Wall Street Journal reported that Musk had directed the throttling of Starshield, citing unnamed U.S. officials. No questions about the report were addressed during the investor Q&A portion of the call.

Beyond aerospace, Musk has increased his engagement in U.S. domestic politics. He has contributed $366m to political causes this election cycle, primarily supporting Republican-aligned Super PACs. He also agreed to co-lead a Pentagon initiative focused on modernizing warfare technology, marking his return to government collaboration after previous involvement with the so-called "Department of Government Efficiency."

In a separate development, Musk announced plans to distribute SpaceX stock to children in the United States next year through a program referenced by former President Donald Trump as part of his "Trump accounts" initiative. The proposal has been framed as an unconventional form of financial education and long-term wealth-building for families.

The announcement follows similar philanthropic moves by other technology firms, including Anthropic's recent decision to allocate 5% of its shares to a public benefit fund. Tesla is scheduled to release its own earnings report later this week, with Musk set to present the findings on Wednesday. The company recently unveiled a new Roadster 2 electric sports car, which demonstrated capabilities including short vertical lifts using pressurized air systems.