Shares of SpaceX, the space company led by Tesla Chief Executive Officer Elon Musk, surged in early trading.

SpaceX was trading around $165 on October 21, up about 12% from the previous session, according to TradingView. It marked the stock’s first gain of more than 10% in about two months, since August.

The rally followed third-quarter earnings and news that the company is reviewing a merger with Tesla. SpaceX said on October 20 that third-quarter net income came to $4.4 billion, more than double the market forecast of $1.88 billion.

On the same day’s earnings conference call, Musk said Tesla and SpaceX had each set up a special committee to review a merger.

Following the news, JPMorgan raised its price target on SpaceX to $500 from $240. It maintained its Overweight rating.