SpaceX The stock price rose nearly 8% on Monday, reaching its highest level since mid-June. Not long ago, Elon Musk's company completed a record initial public offering. With this rise, Musk once again became a billionaire with a fortune in the tens of billions.
This upward trend follows a report released by Morgan Stanley analysts on Sunday. The analysts stated that, at current prices, SpaceX is "cheap" and emphasized the "future release of AI products, progress with Starship, and new neocloud contracts." They recommended buying the stock, setting a target price of $300, which is about 75% higher than the closing price of $171.09 on Monday.
Later last week, SpaceX conducted several historic flights within a single day, including delivering a manned mission to the International Space Station and separately launching a Google AI chip into orbit.
Morgan Stanley analysts suggest that investors should buy the stock before the next planned test flight of the Starship giant rocket, and also before the company's third-quarter financial report, which is expected to be released in late October.
Starship is the next-generation spacecraft of SpaceX and also the largest rocket ever built. Its design goal is to achieve complete reusability, with both the upper stage and boosters being able to return to Earth safely. This system is expected to significantly drive the development of SpaceX's business, enabling the company to launch its Starlink satellites, as well as cargo and manned missions for other companies and organizations into orbit.
Analysts write that if SpaceX attempts to recover the parent spacecraft Starship during the next test flight, this could become "the biggest positive catalyst since IPO." In previous test flights, the parent spacecrafts Starship ended up splashing down in the sea, but their reusability has not yet been proven.
SpaceX also benefits from its artificial intelligence business. This business originated from the acquisition of Musk's xAI last year and has further expanded since the recent acquisition of Cursor. Although the company's self-developed Grok model has not yet truly taken off compared to leading models such as OpenAI and Anthropic, SpaceX has generated considerable revenue by leasing computing power to companies like Google and Anthropic.
Elon Musk has benefited from his close relationship with the Trump administration.
On Wednesday, the Pentagon appointed Musk as co-leader of the “Meridian” project. This project aims to identify the weapons, technologies, and military capabilities that may be needed in future wars for the United States. According to data from FedScout, a considerable portion of SpaceX’s revenue comes from the U.S. government, and an increasing amount of that revenue comes from defense contracts; to date, the company has received over $12.7 billion from related defense department business.
Musk stated over the weekend that he would rename the SpaceXAI department of AI, which is SpaceX, to SpaceXSI, in order to align with President Trump's new brand style.
As the company's stock price soared on Monday, Musk did not attend a hearing before the New York City Council. During the hearing, municipal officials asked several industry leaders and researchers about how to regulate AI. Representatives from OpenAI, Anthropic, Google, and Meta attended to testify.
City councilor Shekar Krishnan stated: " AI has taken control of our economy, inflated valuations, seized our public land for data centers, and increased the net assets of the CEOs of AI, such as Elon Musk, who has become the first trillionaire in our history."
According to Forbes' real-time list of billionaires, Musk's current net worth is $1.03 trillion, calculated based on his holdings in Tesla and SpaceX.
SpaceX went public on June 12 and set a closing record of $201.80 on June 16. Since then, the stock price has started to weaken and hit a bottom at the beginning of August. Since then, the stock price has risen by approximately 58%.
SpaceX did not immediately respond to the request for comment.
