Apple Hits $5.12 Trillion, Briefly Overtakes Nvidia Amid Tesla and SpaceX Moves
Key Facts
Apple briefly overtook Nvidia in market capitalization during trading on October 23, when its value reached about $5.12 trillion, according to 9to5Mac. The moment came on the day the iPhone Duo became available, but it does not mean Apple had regained the lead at the close. The report described the event as reaching a new intraday peak, while the company's shares closed at $347.73 that day, according to EL7 data. Apple had announced that the iPhone Duo was its first foldable iPhone, and that preorders began on October 16 ahead of availability on October 23. Sources do not establish that the phone caused the rise in market value or that it was a commercial success; what is established is that its launch coincided with Apple briefly overtaking its rival.
In a separate development, Tesla disclosed that its board had formed a special committee of disinterested directors to explore deepening its relationship with SpaceX, which could include a merger. The company said in its filing that the committee was examining options for the relationship, without announcing an agreement or deal terms. The disclosure does not guarantee that any transaction will be completed, while Reuters reported that SpaceX's committee had not yet agreed terms with its counterpart. Any potential merger would also require approval from Elon Musk, as SpaceX's controlling investor, according to a filing cited by Reuters. Tesla shares closed at $372.22 on October 23, according to EL7 data.
The value of any potential consideration for Tesla shareholders remains one of the main unresolved questions. Published estimates of the premium they might receive in exchange for switching to SpaceX shares ranged from almost nothing to 35%, Reuters reported, while the committees had not reached terms. Reuters said governance and valuation concerns surround the proposal, and that key technologies tied to the companies' valuations, including orbital data centers, large-scale autonomous taxis and humanoid robots, had yet to reach commercial scale. The agency estimated that a potential deal could create a company valued at about $3.5 trillion. That figure, however, is an estimate for a hypothetical entity, not a disclosed value for an existing agreement.
SpaceX's financial results form part of the backdrop to discussions about a possible combination of the companies. The company posted a profit of $4.4 billion and revenue of $14.6 billion in the three months ended in September, with revenue growing 161% year over year, The Associated Press reported. The agency said artificial intelligence had become the company's largest business by revenue in the third quarter, while Starlink remained its biggest contributor to profit. Capital spending, meanwhile, totaled $19.6 billion in the quarter ended in September, and the company expected it to rise to a range of $35–40 billion in the current quarter. The Associated Press said spending in the previous quarter was nearly three times its level a year earlier.
Shares in the two companies reacted to news on two separate occasions in October. SpaceX shares rose 8% and Tesla shares 3.5% in afternoon trading on October 21, following the announcement that committees had been formed to discuss a potential merger, The Associated Press reported. On October 20, SpaceX shares climbed 7.5% in after-hours trading following the release of its quarterly results, the agency said. Musk said that describing a merger as inevitable was an exaggeration, responding to discussion of the potential deal. His comment came as the two special committees were discussing the matter, without announcing an agreement on terms.
A review of a potential deal could span multiple sectors and markets if it moved into a formal stage. Areas competition authorities might assess include automobiles, satellite communications, artificial intelligence and semiconductors, according to Reuters. The agency also pointed to the possibility that the transaction could raise national security questions in Washington and Beijing, and lead to political pressure on the resulting company that could last for years. These issues relate to the scope of the companies' businesses and the proposed ownership structure, not to an announced deal or regulatory reviews already under way. Required shareholder approval remains part of the process Tesla's disclosure identified for any potential transaction.
The next announced corporate milestone is Tesla's annual shareholder meeting, scheduled for December 3, 2026, according to an investor relations statement. The statement sets the meeting date but does not announce a vote on a merger with SpaceX. Until then, the special committees continue to consider the possibility of deepening ties between the companies, while no deal terms or assurance of completion have been announced. Any potential agreement depends on Musk's approval and the necessary shareholder approvals, according to the cited disclosures and reports. Apple's October 23 overtaking of Nvidia, meanwhile, remained a fleeting event during trading, rather than a confirmed lead at the close.