SpaceX books $561 million gain on its Boring Co. stake in the third quarter
The investment gain made up more than half of SpaceX's other income for the period and helped lift quarterly net income to just over $4 billion, an SEC filing shows.
At a glance
- SpaceX recorded a $561 million investment gain from its stake in The Boring Co. in the third quarter.
- The gain was more than half of SpaceX's other income and helped lift net income to just over $4 billion.
- SpaceX also bought $151 million of Tesla Megapack systems; Musk has floated a Tesla-SpaceX merger.
SpaceX said Thursday that its stake in Elon Musk's The Boring Co. produced a $561 million investment gain in the third quarter, a result the company disclosed in its quarterly financial filing with the Securities and Exchange Commission.
The gain accounted for more than half of SpaceX's "other income" for the period and helped push net income to just over $4 billion, the filing showed.
What Boring Co. does
Boring Co. was created inside SpaceX in 2017 and spun out a year later. It describes its mission as to "revolutionize transportation" by building underground tunnels with stations where passengers can board and exit.
Last month the tunneling company raised $3 billion at a $23 billion valuation, with backing from the United Arab Emirates and a roster of other longtime Musk supporters.
Projects and scrutiny
Boring Co. has announced about a dozen city projects, but its only tunnels currently open for public use are in Las Vegas. There, passengers travel in Tesla vehicles between the downtown convention center and various casino resorts using the Las Vegas Convention Center Loop.
In July of last year, the company struck a deal to build about 20 miles of tunnels in Nashville, Tennessee. Known as the Music City Loop, the project is being designed to carry paying passengers between downtown and the airport in Tesla vehicles. The fast-tracked project sparked a partisan feud when it was greenlit and has drawn new safety concerns this week over sinkhole risks.
In the UAE, Boring Co. plans to build over 150 kilometers (93 miles) of tunnels, including the Dubai Loop announced in February of last year.
Tesla ties and merger talk
SpaceX also said in the filing that it purchased $151 million worth of Tesla's Megapack energy storage systems during the quarter.
On SpaceX's earnings call Tuesday, Musk said he thinks it would be a "good idea" for the two companies to merge, and said they have both created special committees to discuss a potential transaction.
Musk has expanded a number of his companies within Texas, including Tesla, SpaceX, Boring Co. and Neuralink. Tesla broke ground on a lithium refinery in Texas earlier this year, with Governor Greg Abbott in attendance.
Source: CNBC.
Questions and answers
- How much did SpaceX gain from its Boring Co. stake?
- SpaceX reported a $561 million investment gain from its stake in The Boring Co. in the third quarter. That accounted for more than half of its "other income" for the period and helped boost net income to just over $4 billion.
- What is The Boring Co.?
- Boring Co. was created inside SpaceX in 2017 and spun out a year later. It builds underground tunnels with stations where passengers board and exit, and last month raised $3 billion at a $23 billion valuation.
- Where does Boring Co. have tunnels open to the public?
- Its only tunnels currently open for public use are in Las Vegas, where passengers ride in Tesla vehicles on the Las Vegas Convention Center Loop between the downtown convention center and casino resorts.
